INTRODUCTİON TO BUSİNESS

Bookkeeping is the recording of a firm’s financial transactions which usually involves only the recording of budgetary events.

Cash flows statement is one of the outputs of the accounting system process

Sales documents are one of the inputs accounting documents of the accounting system process

Current and prospective investors (owners) use accounting information to make decisions to buy, hold, or sell stock.

Labor unions want to know whether the owners have the ability to pay increased wages and benefits.

Managers are the primary users of "Managerial Accounting"

The accounting cycle requires summarizing of the entries pertaining to a particular period in a trial balance. A trial balance is essentially a list of all accounts and provides an overview of the various types of financial transactions entered into by any organization during a period.

The accounting equation is the formula used to capture the company’s financial position at any point in time.

The operating cycle of a business is the time between buying and/or creating a product or service and receiving the cash on its sale.

Gross profit is the difference between net sales and the cost of goods sold

Accounting consists of three basic activitieS; it identifies, records and communicates the economic events of an organization to interested users. The correct answer is A.

External users of accounting are:

The correct answer is B.

Internal users of accounting include marketing managers, production supervisors, finance directors, and company officers. The correct answer is D.

The main purposes of managerial accounting information are:

The correct answer is C.

Financial accounting measures and records business transactions and provides financial statements that are based on generally accepted accounting principles. The correct answer is E.

Final step of the accounting process is closing the books. The correct answer is D.

A ledger is the book holding all the accounts with their balances. The correct answer is E.

The return on assets ratio measures the overall profitability of assets in terms of the income earned on each dollar invested in assets. The correct answer is C.

A journal is the chronological record of transactions. The correct answer is A.

The return on assets ratio measures the overall profitability of assets in terms of the income earned on each dollar invested in assets. The correct answer is A.