Jill Wants to Start Her Own Business, but Knows Little

question 234

Multiple Choice

Jill wants to start her own business, but knows little about how to set up an accounting system or interpret financial information. "I'm not worried about accounting," she tells her friends. "I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on what I like-finding ways to satisfy my customers." Which of the following is the best response to Jill's comments?

• A) Fine. Just make sure the bookkeeper you hire knows how to use a database, since this type of software is the heart of any efficient accounting system.
• B) Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.
• C) Most entrepreneurs would agree with your opinion. The work done by accountants is mainly clerical in nature, so time spent by business owners on accounting tends to take them away from more important tasks.
• D) You have a good plan. Only managers of large firms require knowledge of accounting. Owners and managers of small businesses can easily get by with just a part-time bookkeeper.

Understand the implications of legislation on cohabitation and same-sex relationships.

Understand the distinction between adjusting entries and closing entries.

Describe the process of closing the books at the end of an accounting period.

Identify real (permanent) and nominal (temporary) accounts and their roles in the closing process.

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Definitions:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, often considered key to personal development.

Personal Growth

The process of improving oneself through such activities as enhancing talents, increasing awareness, and building wealth.

Humanism

A philosophical stance that emphasizes the value and agency of human beings, individually and collectively, often preferring critical thinking and evidence over acceptance of dogma or superstition.

Sustainability

The ability to maintain or improve resources without compromising the ability of future generations to meet their needs.