The Combination of Personnel, Records and Procedures That a Business

question 68

Multiple Choice

The combination of personnel, records and procedures that a business uses to meet its need for financial data is referred to as the:

• A)collecting and reporting system.
• B)input system.
• C)management system.
• D)accounting information system.

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Definitions:

Liquidity Ratios

The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Debt Management

The process of overseeing and controlling an individual's or organization's debt load through various strategies and planning.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or assets, liabilities, and equity) is represented as a proportion of the total account.

Net Income

The total earnings of a company after accounting for all expenses and taxes; also known as net profit.