Which Activities Belong in the Accounting Department

question 225

Multiple Choice

Which activities belong in the accounting department?

• A) Records, measures, and reports monetary transactions.
• B) Tracks strategic financial issues, including money, banking, credit, investments, and assets.
• C) Supports the sales by planning, pricing, and promoting goods or services.
• D) Relies on information from operations to understand inventory, place orders, and forecast consumer demand.

---

Definitions:

Straight-Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.

Bond Premium Amortization

The gradual expense recognition over time of the premium paid above the par value for a bond.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.

Interest Rate

The Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.