business ch. 14 quiz 4

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

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

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

statement of cash flows

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

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

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

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

balance sheet

In the accounting field, CMA stands for:

certified managerial 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:

certified public accountant

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

current liabilities

_____ 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

Managerial accounting provides all of the following financial information EXCEPT:

income statements

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.

net loss

Accountants employed within organizations are called:

private accountants

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

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

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

a patent on titanium lock mechanism

Toys "R" Us was founded in 1948. The iconic mascot Geoffrey the Giraffe was introduced in February 1960. Geoffrey used in all ads and promotions used by the retail toy chain is an example of a(n) _____ because it does not have a physical existence.

intangible asset

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

account payable

The first step in the accounting cycle is to:

analyze business transaction documents

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

a middle manager of the company

For which of the following assets would a wholesale company use depreciation?

its warehouses

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

marketable securities

Accounting provides a framework for looking at:

past performance; current financial health; possible future performance

Which of the following is NOT one of the six steps in the accounting cycle?

paying accounts payable

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

public accountants

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

ratio anaylsis

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

retained earnings

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

revenues

The Financial Accounting Standards Board (FASB) is a:

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