fm p4

Question 1

Deal with money

Answer 1

Finance and Accounting

Question 2

It records financial transactions which
involve finance.

Answer 2

Accounting

Question 3

Are related in that they both deal with money and financial transactions.

Answer 3

Finance and Accounting

Question 4

Is the art of recording, classifying and summarizing transactions and events which are, in
part of a financial character and interpreting the results.

Answer 4

Accounting

Question 5

It is a service activity in that it serves the need of decision makers by providing them with
the needed financial information regarding a business unit.

Answer 5

Accounting

Question 6

To learn the firm’s revenues and expenses, and if the firm is earning a profit or incurring a loss.

Answer 6

Income Statement

Question 7

It shows the firm’s profitability which is an indication of stability for
the firm.

Answer 7

Income Statement

Question 8

To know the firm’s assets, liabilities and capital or owner’s equity

Answer 8

Balance Sheet

Question 9

He is able to know a firm’s stability, liquidity, and solvency.

Answer 9

Balance Sheet

Question 10

Shows how the owner’s equity changed.

Answer 10

Statement of changes in owner’s equity

Question 11

This shows whether
the capital has increased or decreased.

Answer 11

Statement of changes in owner’s equity

Question 12

A statement of the sources and used of the company’s
cash/funds.

Answer 12

Cash flow or funds flow statement

Question 13

This statement details from where the funds came from – owners, creditors, or customers.

Answer 13

Cash flow or funds flow statement

Question 14

It also shows where the cash went – payment of operating expenses, payment of liabilities, acquisition of
inventory another assets, and investments.

Answer 14

Cash flow or funds flow statement

Question 15

Is the management of money or the money resource itself.

Answer 15

Finance

Question 16

Includes tangible and intangible resources needed by a company to attain its goal.

Answer 16

Non-human capital

Question 17

Include financial assets such as cash and marketable securities that help in maintaining a healthy working capital position.

Answer 17

Tangible assets

Question 18

Include real assets of property, plant, and equipment.

Answer 18

Tangible assets

Question 19

Include goodwill, copyrights, trade names and brand among others.

Answer 19

Intangible assets

Question 20

Includes human resources, the employees, including the rank and file employees, the managerial employees, consultants, auditors, among others are utilized by the company to attain its goals and objectives.

Answer 20

Human capital

Question 21

Means additional investment in assets, which, in turn, requires the need for additional
capital or funding.

Answer 21

Growth in sales

Question 22

Involves making forecasts of sales and expenses under alternative production and
marketing strategies and deciding how to meet the forecasted financing requirements.

Answer 22

Financial planning

Question 23

Involves budgeting which is part of the accounting process and function.

Answer 23

Financial planning

Question 24

Deals with the feedback and correction phase that are required to ensure plans are
followed or modified to respond to the environment to attain set goals, financial.

Answer 24

Financial control

Question 25

Is the branch of accounting that deals with the recording of business transactions and, the preparation of the financial statement.

Answer 25

Financial accounting

Question 26

The basic objective of financial accounting is to provide the objective financial information about how the business is performing and how stable the company is.

Answer 26

Financial accounting

Question 27

Is the branch of accounting concerned with providing information to managers, those inside the organization, and those who direct and control the company’ operations.

Answer 27

Managerial accounting

Question 28

Includes information on the costs of products and services, budgets, performance reports, and other information which assists managers in their planning and control activities.

Answer 28

Managerial accounting information

Question 29

Concerned with the efficient and effective allocation, acquisition and use of funds.

Answer 29

Financial management

Question 30

Responsible for forecasting and planning, making major investment and financing decisions, coordination and control, and dealings with the financial markets.

Answer 30

Financial managers