Intro to Business Chapter 14 Review

True or False: Balance sheet, income statement, and statement of cash flow are the three primary financial statements included in the annual report?

True

Another term for owners' equity is: a. Assets b. Net worth c. Gross sales d. Liabilities

b. Net Worth

True or False: The job outlook for accountants over the next decade is positive.

True

The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities is called what? a. Auditing. b. Accounting. c. Ratio Analysis. d. Book Keeping

b. Accounting

What are the three broad categories asset can be divided into? a. Past assets, Fixed assets, and intangible assets. b. Current assets, fixed assets, and intangible assets. c. Past assets, Fixed assets, and Depreciation. d. Current assets, Trademark, intangible assets.

b. Current assets, fixed assets, and intangible assets.

Which of the following is NOT a type of ration analysis used by managers to interpret the numbers in financial statements? a. Profitability b. Operating c. Activity d. Liquidity

b. Operating

What is the definition of deprecation? a. The total dollar amount of a company's sales. b. The allocation of an asset's original cost to the years in which it is expected to produce revenues. c. A method of accounting in which each transaction is recorded as two entries so that two accounts or records are changed. d. The costs of generating revenues.

b. The allocation of an asset's original cost to the years in which it is expected to produce revenues.

What is the most liquid asset and is listed first in the balance sheet (asset)? a. Buildings. b. Stocks. c. Cash. d. NFT's

c. Cash

In the accounting field, CMA stands for: a. Certified motivation accountant b. Certified monetary auditor c. Certified managerial accountant d. Centralized managerial accountant

c. Certified Managerial Accountant

_____ is the system used to record a firm's financial transactions in a routine and clerical process. a. Accounting b. Auditing c. Record keeping d. Bookkeeping

d. Bookkeeping

This company manipulated accounting rules to improve its financial statements, filed bankruptcy in 2001, and its former top executives charged with multiple counts of conspiracy and fraud. a. KPMG International. b. Deloitte. c. EY (Ernst & Young). d. Eron Corp's.

d. Eron Corp's

True or false: the definition of managerial accounting is administrative-accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

False