Materiality, Aggregation, Offsetting, and Comparative Information Quiz
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Questions and Answers

What does the American Heritage Desk Dictionary define finance as?

  • Strictly a science of managing money
  • Only dealing with assets and not money
  • Limited to credit management only
  • Management of money, banking, investments, and credit (correct)
  • Who is often considered as a fund custodian in finance?

  • Financial analyst
  • Accountant
  • Bank teller
  • Finance manager/officer (correct)
  • What are financial resources in business finance?

  • Liabilities of the business
  • Resources for marketing purposes only
  • Funds provided by the owner or creditors (correct)
  • Assets that cannot be converted into cash
  • Which type of expenditure involves acquiring or constructing buildings and machinery?

    <p>Capital expenditures</p> Signup and view all the answers

    Which term refers to funds that are provided by the owner or creditors of a business?

    <p>Financial resources</p> Signup and view all the answers

    What do financial investments aim to achieve in a business?

    <p>Income and appreciation/growth</p> Signup and view all the answers

    What is the primary focus of financial investments in a business?

    <p>(ROI) Return on Investment and business growth</p> Signup and view all the answers

    Which term describes resources that are expected to provide income and appreciate in value?

    <p>(ROI) Return on Investment</p> Signup and view all the answers

    In what way do operating expenditures differ from capital expenditures?

    <p>Operating expenditures are period costs, while capital expenditures involve acquisition or construction.</p> Signup and view all the answers

    Who is typically considered a fund custodian in finance?

    <p>Financial institutions like banks</p> Signup and view all the answers

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