quiz 9

in the context of balance sheets, resources owned by a firm are known as

assets

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

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

__ 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

budgeting

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

costs of goods sold

in the context of balance sheets, accounts receivable is an example of

current assets

in the context of statement of cash flows, cash flows from operation activities show the amount of cash that flowed into the company form

dividends

which of the following is a difference between managerial accounting and financial accounting

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.

in the context of budgeting, a flexible budget:

is designed to show the appropriate budgeted level of costs for each different level of sales.

in the context of balance sheets, which of the following is a difference between liabilities and owners' equity

liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firms assets

__ is the profit or loss a firm earns in the time period covered by the income statement

net income

in the context of financial statements of a company, cash flow statements commonly being with

net income

in the context of the income statement of an organization, accountants use accrual-basis accounting when recognizing

revenues

in the context of accounting, which of the following best defines cost?

the value of what is given up in exchange for something else

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.

unqualified