Business Dynamic mod 7

costs of goods sold

Costs are deducted from revenue in several stages to show how net income is determined. The first step in this process is to deduct:

unqualified

If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presented, the report will offer a(n) _____ opinion.

It can lead to budgetary slack.

In the context of budget preparation, which of the following is a disadvantage of participatory budgeting?

Middle managers are likely to be highly motivated to achieve budgetary goals.

In the context of budget preparation, which of the following is an advantage of using bottom-up budgeting?

net income

In the context of financial statements of a company, cash flow statements commonly begin with _____.

The Sarbanes-Oxley Act

Net income

budgetary slack

The overstating of needs or setting low budget goals by managers in a budgeting process can result in _____.

balance sheet, income statement, and statement of cash flows.

The three kinds of basic financial statements that are prepared in financial accounting are:

financial accounting

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

sever all ties with any firms or institutions they served prior to joining the board.

To preserve independence and impartiality, the Financial Accounting Standards Board (FASB) members are required to:

Financial accounting is governed by a set of generally accepted accounting principles, whereas managerial accounting uses procedures developed internally that are not required to follow generally accepted accounting principles.

Which of the following is a difference between managerial accounting and financial accounting?

Budgeting

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.