Chapter 14 Final

Summarizing

Accounting involves the of the financial activities for firms.

All of the above

Accounting provides a framework for looking at

One Year

Fixed assets are property and buildings that a firm expects to use for more than

It has eliminated many nonauditing tasks they use to provide for their customers

How has the Sarbanes-Oxley Act affected accountants

Cost of Goods Sold

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

Ratio Analysis

Involves calculating and interpreting financial statements in order to assess its condition and performance

Net Working Capital

Is arrived at by subtracting current liabilities from current assets

Debt

Ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations

Activity

Ratios reflect the speed with which resources are converted to cash or sales

Different for each industry

The acceptable turnover ratio is

All of the above statement about the accounting profession are true

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

Financial accounting; Managerial accounting

deals with reporting to outsider, accounting deals with the internal operations of the firm

Net Worth

Another term for owners equity is

Debt to Equity

The ratio measures the relationship between the amount of debt financing and the amount of equity financing

Generally Accepted Accounting Principles

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

A patent on titanium lock mechanism

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

marketable securities

temporary investment of excess cash in bonds and stocks that can readily be converted into cash

Assets

things of value owned by a firm are called its

One Year

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

Bookkeeping

Is the system used to record a firm's financial transaction in a routine and clerical process

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

Accounts receivable

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

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

Revenues

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