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
