Intro to Business Ch. 14

Which of the following is an example of an asset that might be owned by a minor league baseball team? the price made for advertising on local radio all of these salaries owed to its players reputation as a winning team the cost of getting tickets printed

reputation as a winning team

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.

annual report

Things of value owned by a firm are called its:

assets

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

assets = liabilities + owners' equity

Which of the following is an example of an intangible asset for a manufacturer of padlocks? a warehouse for storing locks a patent on titanium lock mechanism an office for company CEO a machine for forming the locks out of sheet metal money owed to them by a do-it-yourself superstore chain

a patent on titanium lock mechanism

Another term for owners' equity is:

net worth

In accounting, every transaction must be recorded as two entries. This system is called:

double entry bookkeeping

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

Financial Accounting; Managerial Accounting

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

Generally Accepted Accounting Principles (GAAP)

Accountants employed within organizations are called:

Private accountants

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

Public accountants

Which of the following statements about the accounting profession is true? Accountants cannot legally offer management consulting services. Accountants are typically classified as private or public accountants. All of the above statement about the accounting profession are true. Private accountants serve individuals and organizations on a fee basis. Public accountants work for local, state, and national agencies.

Accountants are typically classified as private or public accountants.

Which of the following statements about the accounting profession is true? All of the above statement about the accounting profession are true. Most CPAs first work for public accounting firms and later become private accountants or financial managers. Private accountants are also called corporate accountants. Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program. Public accountants serve individuals and organizations on a fee basis.

All of the above statement about the accounting profession are true.

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

In the accounting field, CMA stands for:

Certified Managerial Accountant (CMA)

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:

Certified Public Accountant (CPA)

Which of the following is an example of a liability that might be owned by an antique mall? money owed to utility companies promotional signs an expensive Chinese urn with a small crack the sales prices paid by customers accounting and inventory software

money owed to utility companies

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

paying accounts payable

The Financial Accounting Standards Board (FASB) is a:

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

International accounting standards:

do not exist