chapter 14
True or false: An expense statement provides an explanation of how the company's cash changed from the beginning of the accounting period to the end.
False
Which of the following would most likely include a title of controller or internal auditor?
Private accountant
Cash from ______ activities is calculated by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.
operating
An accountant that is employed by a large corporation, government agency, or other organization to prepare and analyze their financial statements would be called a(n) ______ accountant.
private
Organizations evaluate their operations through the recording, measurement, and interpretation of financial information. This process is known as _______.
accounting
The ___________ cycle, is a four-step procedure accounting system.
accounting cycle
Cost of goods sold is calculated by using ______.
beginning inventory, interim purchases, and ending inventory
A(n)_____ , Correct Unavailable is an internal financial plan that forecasts income and expenses of the organization for a set period of time.
budget
Of utmost importance to management is/are _____, which is the movement of money through a firm on a daily, weekly, monthly, or yearly basis.
cash flow
The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies is ______.
cost of goods sold
The process of spreading the cost of a tangible asset over its estimated useful life is referred to as ______.
depreciation
Depreciation is considered a type of ______.
general & administrative expense
By its very design, the ______ offers one of the clearest possible pictures of the company's overall revenues and the costs incurred in generating those revenues.
income statement
Which report summarizes an organization's profitability over a specific period, which may be a week, a month, or a year.
income statement
Debts that a firm owes to others are called
liabilities
The goal of double-entry bookkeeping is to ______.
maintain the balance of the accounting equation
Revenue is defined as ______.
sales plus other money coming into the firm
The ______ explains how the company's cash changed from the beginning of the accounting period to the end.
statement of cash flows