Accounting Fundamentals Quiz
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Questions and Answers

What is the primary function of accounting?

  • Measuring business activities, processing information into reports, and communicating results to decision makers (correct)
  • Managing human resources effectively
  • Regulating business operations to ensure compliance
  • Maximizing profits and minimizing expenses
  • Who are the primary users of accounting information?

  • Marketing professionals
  • Supply chain managers
  • Human resource managers
  • Decision makers (correct)
  • What does the accounting equation represent?

  • The relationship between cash flow and investment
  • The relationship between revenue and expenses
  • The relationship between supply and demand
  • The relationship between assets, liabilities, and equity (correct)
  • What do financial statements help to accomplish?

    <p>Provide a snapshot of a company's financial position and performance</p> Signup and view all the answers

    How can return on assets (ROA) be used in evaluating business performance?

    <p>To assess how effectively a company is using its assets to generate profits</p> Signup and view all the answers

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