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