The terms bookkeeping and accounting have different meanings.
12.A company's management information system is a subsystem of its accounting information system.
13.The modern definition of accounting focuses on the role of accounting in making economic decisions rather than on how to do accounting.
14.Two primary objectives of management are to achieve profitability and to achieve liquidity.
15.Liquidity means having enough funds on hand to pay debts when they fall due.
16.Financial accounting information is used primarily by management.
17.Accounting ratios are useful as management performance measures.
18.The purchase of equipment is an example of a financing activity.
19.Buying and producing goods and services are examples of operating activities.
20.A major function of management is to provide the accountant with relevant and useful information.
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