Chapter 17 (Learnsmart, BUS 110)

Businesses that are not incorporated identity the investment of the sole proprietor through the ______________ account

Capital

The statement of cash flow is a financial that shows

Cash receipts and disimbursements

What term describes the cost of merchandise the firm sells?

Cost of goods sold

Which of the following are considered users of managerial accounting information

Department managers and the Chief Financial Officer

Over time, the amount of information in the annual report has, on average:

Increased

Banks,travel, and entertainment records will be found in which segment of the accounting system?

Inputs

On a Balance sheet, assets may include:

Intangible resources and tangible resources

_______________ are used in or provided by the firm's investment activities

Investments

"Bottom line"

Last line on income statement and net income or loss after taxes

The major categories on the balance sheet include which of the following?

Liabilities, Owner's equity, and Assets

The ease with which an asset can be converted to cash is called:

Liquidity

Key working areas of accounting:

Managerial accounting, Auditing, Financial accounting, government and not-for-profit accounting, and tax accounting

Discliplines in accounting

Managerial accounting, tax accounting, and financial accounting

A major purpose of accounting is to help internal _________________ make well-informed decisions

Managers

A certified accountant

Must follow GAAP in the United States and must pass a series of exams

A certified management accountant:

Must pass a qualifying exam and be certified

___________ income after taxes is the last line on the income statement

Net income

Accounting is needed for _________________ organizations as well as for profit-seeking firms.

Non-profit

Arthur Anderson was convicted of

Obstruction of justice

Depreciation is considered a type of

Operating expense

Which of the following would be shown on an income statement?

Operating expenses, net income, and revenue

On the statement of cash flows financing activities would include

Paying past debt, Taking on new debt, and Paying dividends

Managerial accounting is concerned with:

Preparing budgets, Controlling, and measuring production costs

Examples of fixed assets

land, buildings, equipment

If financial management is the heartbeat of competitive businesses, what keeps that heartbeat stable?

Accounting information

The Sarbanes-Oxley Act prohibits accounting firms providing consulting services to companies they

Audit

The ______________ ___________ reports a firm's financial condition on a specific date, whereas the ______________ _______________ summarizes revenues,costs, and expenses for a specific period

Balance sheet and income statement

Purpose of Sarbanes-Oxley Act

Provides greater scrutiny of the of the accounting industry

Government and not-for-profit accounting involves working for organizations whose purpose is to serve

Ratepayers and taxpayers

Inputs in accounting system

Shipping and Sales documents

The primary users of government and not-for-profit accounting information are:

Special interest groups, taxpayers, and legislative bodies

Not-for-profit organizations need accountants to show that their funds are being ______________ properly

Spent

The Financial Accounting ______________ ______________ defines the generally accepted accounting principles

Standard Board

What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service?

Tax accountant

Financial _______________ include buying and selling goods.

Transactions

Major accounting scandals in the early 2000s involved companies such as:

Tyco, WorldCom, and Enron