Which Activities Belong in the Accounting Department

question 348

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 is marketing.
• D)Relies on information from operations to understand inventory, place orders, and forecast consumer demand.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Short-term Obligations

Financial liabilities that are due for payment within one year.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting equation.

Asset Account

An account on a balance sheet representing tangible or intangible items of value owned by a company.