Principles of Financial and Managerial
Accounting - D196 Already Passed
Accounting plays a vital role in the decision-making process. Which action is the first step in the
decision-making process?
Identify the issue
The money that a company needs to buy its land, pay its employees, and buy its supplies is called
capital. What are the potential sources of capital for a business?
Investors, creditors, and retained business earnings
Which primary area of accounting generates reports for internal users?
Management accounting
True or False: Accountants measure and communicate the results of business activities.
True
Which group uses financial information to evaluate whether a company will be able to repay a
loan?
Lenders
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