Intro to Business - Chapter 8

current asset

Accounts receivable is categorized as a(n):

the resources owned by a firm

Assets refer exclusively to:

management accountant

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n):

Sarbanes-Oxley Act

Congress passed what act in 2002 to combat widespread accounting malpractice.

production of specific goods

In activity-based costing, product costs are assigned based on links between activities that drive costs and what else?

public accountant

Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a:

language of business

The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:

direct costs

These are costs that are incurred as the result of some specific cost object.

Public Company Accounting Oversight Board

This body was established by the Sarbanes-Oxley Act of 2002, and it acts to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

budgeting

This 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.

financial manager

To make a forecast of the finances, Susan needs the debt, cost, and profit statistics of all branches of the PTree Corporation. Based on the information that she needs, Susan is a what?

False

True or False? A firm's operating budget represents a firm's overall plan of action for a specified time period.

False

True or False? Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.

True

True or False? Alexis decides to check with his accountant how much money his company owes to the raw materials supplier. To determine that, Alexis needs to ask his accountant to provide him with the company's balance sheet..

True

True or False? John and Elizabeth are evaluating three telecommunication companies to determine the best company to invest in. Horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help determine the increase in their profits.

False

True or False? The CFO of SpotLight Production Company requests his accountant Felipe to prepare a customized report of the cost overruns at the company's production facility in L.A. Felipe is a managerial accountant.

False

True or False? The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission.

differentiates the budgeted costs for each sales level

What does a flexible budget do?

provides reports and analysis to managers to help them make informed business decisions

What does managerial accounting do?

account values reported on financial statements over two or more years

What is a horizontal analysis the comparison of?

it can lead to budgetary slack

What is one of the disadvantages of participatory budgeting?

Its members can be reappointed to serve one additional term.

What is true of the Financial Accounting Standards Board (FASB)?

unqualified

What kind of opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements?

balance sheet

What report gives the financial positions of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.

owner's equity

What term refers to the claims that stockholders have against their firm's assets?

The International Accounting Standards Board (IASB)

Which body makes U.S. accounting practices more consistent with those in other nations along with the Financial Accounting Standards Board (FASB)?

financial accounting

is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.