BUSI - Ch. 14 (Using Financial Information and Accounting

Financial Accounting Standards Board (FASB)

A private organization that is responsible for establishing financial accounting standards in the United States

Generally Accepted Accounting Principles (GAAP)

Ensures accuracy and consistency in the way financial information is reported

Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May. Sales discounts amounted to $18,000. There were no returns. The difference, $102,000, is Nevada Silver's:

Net sales

Sarbanes-Oxley Act

Restricts the types of nonaudit services auditors can provide audit clients

Assets

Things of value owned by a firm

Computers can enhance accounting by:

controlling purchase orders providing a means to control inventory preparing tax returns handling general ledger functions

Profitability Ratios are used to:

determine how efficiently a company is being managed

Gross profit

net sales - cost of goods sold

Intangible assets include

patents, trademarks, copyrights, franchises, and goodwill

Managerial accounting provides which financial information?

payroll summaries budgets production reports monthly sales records NOT income statements

Annual Report

A yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within:

1 year