Mastering Accounting
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Questions and Answers

Which term is often used interchangeably with accounting?

  • Auditing
  • Finance (correct)
  • Economics
  • Bookkeeping
  • What is the main focus of financial accounting?

  • Recording of financial transactions
  • Preparation of financial statements (correct)
  • Internal use by management
  • Measurement and analysis of information
  • Which field of accounting focuses on information for internal use by management?

  • Tax accounting
  • Financial accounting
  • Management accounting (correct)
  • Cost accounting
  • What is the purpose of accounting?

    <p>To measure the results of an organization's economic activities</p> Signup and view all the answers

    What are practitioners of accounting known as?

    <p>Accountants</p> Signup and view all the answers

    Financial ratios are basic calculations using quantitative data from a company’s ______

    <p>financial statements</p> Signup and view all the answers

    Businesses use financial ratios to determine ______

    <p>liquidity, debt concentration, growth, profitability, and market value</p> Signup and view all the answers

    Financial ratios are sometimes referred to as ______ ratios or finance ratios

    <p>accounting</p> Signup and view all the answers

    Internal and external stakeholders use financial ratios for ______

    <p>competitor analysis, market valuation, benchmarking, and performance management</p> Signup and view all the answers

    Financial ratios are important for assessing how a company generates revenue and profits using business expenses and ______

    <p>assets in a given period</p> Signup and view all the answers

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