Chapter 17 (Learnsmart, BUS 110)
Businesses that are not incorporated identity the investment of the sole proprietor through the ______________ account
Capital
The statement of cash flow is a financial that shows
Cash receipts and disimbursements
What term describes the cost of merchandise the firm sells?
Cost of goods sold
Which of the following are considered users of managerial accounting information
Department managers and the Chief Financial Officer
Over time, the amount of information in the annual report has, on average:
Increased
Banks,travel, and entertainment records will be found in which segment of the accounting system?
Inputs
On a Balance sheet, assets may include:
Intangible resources and tangible resources
_______________ are used in or provided by the firm's investment activities
Investments
"Bottom line"
Last line on income statement and net income or loss after taxes
The major categories on the balance sheet include which of the following?
Liabilities, Owner's equity, and Assets
The ease with which an asset can be converted to cash is called:
Liquidity
Key working areas of accounting:
Managerial accounting, Auditing, Financial accounting, government and not-for-profit accounting, and tax accounting
Discliplines in accounting
Managerial accounting, tax accounting, and financial accounting
A major purpose of accounting is to help internal _________________ make well-informed decisions
Managers
A certified accountant
Must follow GAAP in the United States and must pass a series of exams
A certified management accountant:
Must pass a qualifying exam and be certified
___________ income after taxes is the last line on the income statement
Net income
Accounting is needed for _________________ organizations as well as for profit-seeking firms.
Non-profit
Arthur Anderson was convicted of
Obstruction of justice
Depreciation is considered a type of
Operating expense
Which of the following would be shown on an income statement?
Operating expenses, net income, and revenue
On the statement of cash flows financing activities would include
Paying past debt, Taking on new debt, and Paying dividends
Managerial accounting is concerned with:
Preparing budgets, Controlling, and measuring production costs
Examples of fixed assets
land, buildings, equipment
If financial management is the heartbeat of competitive businesses, what keeps that heartbeat stable?
Accounting information
The Sarbanes-Oxley Act prohibits accounting firms providing consulting services to companies they
Audit
The ______________ ___________ reports a firm's financial condition on a specific date, whereas the ______________ _______________ summarizes revenues,costs, and expenses for a specific period
Balance sheet and income statement
Purpose of Sarbanes-Oxley Act
Provides greater scrutiny of the of the accounting industry
Government and not-for-profit accounting involves working for organizations whose purpose is to serve
Ratepayers and taxpayers
Inputs in accounting system
Shipping and Sales documents
The primary users of government and not-for-profit accounting information are:
Special interest groups, taxpayers, and legislative bodies
Not-for-profit organizations need accountants to show that their funds are being ______________ properly
Spent
The Financial Accounting ______________ ______________ defines the generally accepted accounting principles
Standard Board
What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service?
Tax accountant
Financial _______________ include buying and selling goods.
Transactions
Major accounting scandals in the early 2000s involved companies such as:
Tyco, WorldCom, and Enron