To Effectively Run a Business,it Is Necessary To

question 130

Multiple Choice

To effectively run a business,it is necessary to:

• A)understand and use accounting information.
• B)use a public accounting firm.
• C)know the differences between accounting and bookkeeping.
• D)hire a full-time accountant.

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Definitions:

Cash Position

An indicator of a company's liquidity, showing the amount of cash or cash equivalents it has on hand at a given time.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a single point in time by detailing assets, liabilities, and equity.

Operating Activities

The day-to-day actions of a business involved in producing and selling its goods or services, which are reflected in the cash flow from operating activities.

Producing

The act of creating, manufacturing, or generating products or services.