BUSN 1003 chapter 14

account payable

In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n):

cost of goods sold

In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:

certified managerial accountant

In the accounting field, CMA stands for:

income statements

Managerial accounting provides all of the following financial information EXCEPT: -budgets -monthly sales records -payroll summaries -income statements

a middle manager of the company

Managerial accounting provides information that would probably be most beneficial to:

the sale of land adjacent to the manufacturer's administrative office building

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:

the money borrowed to purchase the furniture in the tutorial area and the interest owed on that debt

On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include:

private organization that is responsible for establishing financial accounting standards in the United States

The Financial Accounting Standards Board (FASB) is a:

balance sheet

The _____ summarizes an organization's financial status at the end of an accounting period.

revenues

The dollar amount of sales plus any other income received from sources like interest and dividends is called:

analyze business transaction documents

The first step in the accounting cycle is to:

analyze business transaction documents

The last step in the accounting cycle is to:

assets

Things of value owned by a firm are called its:

generally accepted accounting principles

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

intangible assets

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

cans of yellow paint for refurbishing equipment

Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment? warehouse building for storing finished equipment shipping area for finished goods and receiving area for component parts cans of yellow paint for refurbishing equipment production equipment for assembling engines

assets = liabilities + owners' equity

Which of the following calculations is a formal expression of the accounting equation?

operating

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements? -profitability -debt -liquidity -operating

paying accounts payable

Which of the following is NOT one of the six steps in the accounting cycle? -preparing the financial statements -paying accounts payable -analyzing business transaction documents -recording business transactions in journal

money owed to utility companies

Which of the following is an example of a liability that might be owned by an antique mall?

reputation as a winning team

Which of the following is an example of an asset that might be owned by a minor league baseball team?

a patent on titanium lock mechanism

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

statement of cash flows

A(n) _____ is a summary of the money flowing into and out of a firm.

private accountants

Accountants employed within organizations are called:

net loss

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

annual report

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.

statement of cash flows

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

income statement

A(n) _____ is a summary of what a company has earned and spent over a given period.

net profit

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.

current financial health possible future performance past performance

Accounting provides a framework for looking at:

account payable

A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):

accounts receivable

Amounts owed to the firm by customers who bought goods and services on credit are called:

certified public accountant

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

-Private accountants are also called managerial accountants. -Most CPAs first work for public accounting firms and later become private accountants or financial managers. -Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program.

Which of the following statements about the accounting profession is true?

retained earnings

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

Current liabilities

_____ are debts that are to be paid within twelve months.

Public accountants

_____ are independent accountants who serve organizations and individuals on a fee basis.

Marketable securities

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

Selling expenses

_____ are those expenses related to marketing and distributing of a company's products.

Financial accounting; Managerial accounting

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Ratio analysis

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

one year

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within: