BUS 240 TEST 1 QUESTIONS AND ANSWERS

BUS 240 TEST 1 QUESTIONS AND ANSWERS
Accounting - CORRECT ANSWER✅✅✅Measurement and reporting information system that helps
users of that information make business decisions



Financial Accounting - CORRECT ANSWER✅✅✅Identifying, measuring, and communicating



Why is accounting information important? - CORRECT ANSWER✅✅✅Helps decision makers
determine where they are, where they've been, and where they're going



Merchandising (retail) - CORRECT ANSWER✅✅✅Sell items made by others (Hy-vee, Walmart)

Purpose: profit (return to owners)

Classification: Business



Manufacturing - CORRECT ANSWER✅✅✅Produce what they sell to retailers/customers (Ford,
Kellog)

Purpose: profit

Classification: Business



Service - CORRECT ANSWER✅✅✅Sell services instead of products (Hotel, restaurant, airline)

Purpose: Profit

Classification: Business



Government or Nonprofit - CORRECT ANSWER✅✅✅County, state, American Cancer Society

Purpose: serve/promote the public good

Classification: Non business



How do businesses create value? - CORRECT ANSWER✅✅✅- Effective in meeting the needs of
customers

- Efficient in controlling costs so that prices charged to customers exceed the costs to the co