Business Finance, 2026 – Study Material and
Practice Questions
American Heritage Desk Dictionary - ANS✔✔ Defined finance as the
management of money, banking, investments, and credit. Also defined
finance as a management of money and other assets
Finance - ANS✔✔ Is both a science and an art of correct application of the
economic and accounting concepts and principles that define the system,
structure, and process of management, allocation, and utilization of financial
resources, investments, and expenditures.
Financial Resources - ANS✔✔ Refer to the funds of a business which are
provided by the owner or by the creditors.
Resources of the business - ANS✔✔ Are largely intended to handle the
current operating activities and the other activities that will have long-term
effects
Financial Investments - ANS✔✔ Are resources that are expected to provide
income and achieve appreciation or growth of the business.
Interest and Bonds - ANS✔✔ The financial benefits that are usually derived
from financial investments.
Financial Expenditures - ANS✔✔ May cover the operating expenditures and
the capital expenditures.
Operating Expenditures - ANS✔✔ Are period costs that include business
expenses such as salaries, electricity, and water, travelling expenses, and
the like.
