Canadian Business- Chapter 7

LO5 I____________ Financial Statements: Digging Beneath the Surface

Interpreting

LO3 Financial Accounting: Intended for Those on the O_________ Looking In

Outside

LO4 Financial S_________: Read All about Us

Statements

Budgeting is a management tool that explicitly shows how firms will a__________ and use the resources needed to achieve its goals over a specific time period.

acquire

If there are major issues they get an a_______ opinion.

adverse

What accountants do- its more than just bookkeeping it requires a vast knowledge of computers, a_________ and report preparations.

analysis

Owner's equity is the claim a firm's owners have against their company's a________ (often called shareholders' equity on balance sheets of corporations).

assets

Liabilities are c_______ against the firm's assets.

claims

Operating budgets are budgets that c__________ an organization's sales and production goals and the resources needed to achieve these goals.

communicate

Activity based c_________ is a technique used to assign product costs based on links between activities that drive costs and the production of specific products.

costing

Incremental costs are costs that change as the result of a d__________.

decision

Incremental analysis is an evaluation of the financial impact d___________ alternatives would have in a particular decision making situation.

different

Every publicly traded company in Canada is required to have a qualified accountant perform an annual e_________ audit of its financial statements.

external

Revenues are i____________ in a firm's assets that result from the sale of goods, provision of services, or other activities intended to earn income.

increases

Net income is that difference between the revenue a firm earns and the expenses it i_______ in a given time period.

incurs

If the auditor identifies l_________ problems they get a qualified opinion.

limited

Managerial accounting is the branch of accounting that provides reports and analysis to m__________ to help them make informed business decisions.

managers

LO1 Accounting: Who n_____ it?

needs

Master budget is a presentation of an organization's o___________ and financial budgets that represents the firm's overall plan of action for a specified time period.

operational

The balance sheet is a financial statement that reports the financial p____________ of a firm at a particular point in time by identifying and reporting the value of the firm's assets, liabilities and owners equity.

position

International Financial Reporting Standards (IFRS) is an international set of accounting standards that are used in the p___________ of financial reports.

preparation

Financial accounting is the branch of accounting that p___________ financial statements for use by owners, creditors, suppliers and external stakeholders.

prepares

The accounting equation is: assets = liabilities + owners equity. This states that the value of a firm's assets is, by definition, exactly equal to the financing p___________ by creditors and owners for the purchases of those assets.

provided

Accrual basis accounting is the method of accounting that r____________ revenue when it is earned and matches expenses to the revenues they helped produced.

recognizes

LO2 The Accounting Profession: More than just r_________ Transactions

recording

Assets are r___________ earned by the firm.

resources

Expenses are r____________ that are used up as the result of business operations.

resources

Financial budgets are budgets that focus on the firm's financial goals and identify the r__________ needed to achieve these goals.

resources

Statement of retained earnings is a simple statement that shows how r__________ earnings have changed from one accounting period to the next.

retained

The income statement is a financial statement that reports the r_____________, expenses and net income that resulted from a firm's operations over an accounting period.

revenues

Statement of cash flows are the financial statements that identifies a firm's s_________ and uses of cash in a given accounting period.

sources

Generally accepted accounting principles is a set of accounting standards that is used in the preparation of financial s__________.

statements

Users are managers, shareholders, employees, creditors, s_________, and government agencies.

suppliers

Horizontal analysis is an analysis of financial statements that compares account values reported on these statements over t____ or more years to identify changes and trends.

two

If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presents, the report will offer an u__________ opinion.

unqualified