business chpt 8

horizontal analysis is the comparison of:

account values reported on financial statements

the _______ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities and owners equity

balance sheets

______ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period

budgeting

which of the following is a key external user of a company's accounting information

competitors

______ are costs that are incurred as the result of some specific cost object

direct costs

benjamin works for a private firm that has been contracted to examine the books of accounts of the Luigi corporation. After checking the figures and examining the companys accounting methods, he is required to prepare a report on his findings. The work that Benjamin is tasked with is the characteristic of a

external auditor

what is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators

financial accounting

which of the following is a difference between financial accounting and managerial accounting

financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers

annual reports include ______ that disclose additional information about a firms operations and special circumstances that clarify and supplement the numbers reported on the financial statements

notes

the heavy reliance on accounting information by business stakeholders had led to it sometimes being called the

language of business

Sebastian is an employee of Power Trans Inc. His duties include preparing reports and analyzing company accounting data. He also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sebastian's role is that of a _____.

management accountant

Kyra Inc. has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.

profit and loss statement

matt is asked by clint publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a

public accountant

through the generally accepted accounting principles (GAAP), the financial accounting standards board (FASB) aims to ensure that financial statements are__________

relevant, reliable, consistent, and comparable

congress passed the ______ of 2002 to combat widespread accounting malpractice

sarbanes- oxley act

asserts refer exclusively to

the resources owned by a firm

which of the following best defines cost

the value of what is given up in exchange for something else