Chapter 17 Test

long-term liability

A U.S. company issues bonds to generate money for expanding its business to China. The company generates a sum of $50,000 in this fashion. This money is an example of a(n) ________.

False

A fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31. True or False?

controller

A(n) ________ is the highest-ranking accountant in a company, responsible for overseeing all accounting functions.

True

According to the double-entry bookkeeping method, the accounting equation must be in balance. True or False

have been incurred but for which bills have not yet been received

Accrued expenses are expenses that ________.

owner's equity

Assets - Liabilities = ________.

the clerical aspect of accounting

Bookkeeping refers to ________.

true

External auditors are independent accounting firms that provide auditing services for public companies. True or False?

true

Net income refers to profit earned or loss incurred by a firm. True or False?

gross profit

Net sales - cost of goods sold = ________.

true

Statement of cash flows is a statement of a firm's cash receipts and cash payments. True or False?

corporate lawyers to report evidence of financial wrongdoing

The Sarbanes-Oxley Act requires ________.

electricity charges

Which of the following expenses is classified as accounts payable? -electricity charges -sales commissions -employee salaries -interest on bonds -loans from banks

inventory in the warehouse

Which of the following is an example of a company's asset? -inventory in the warehouse -mortgage loans -bonds issued by the company -short-term loans -debt security raised by the company

balance sheet

________ is a statement of a firm's financial position on a particular date and is known as a statement of financial position.