isom 125

_____ is an intangible asset that often includes an organization's reputation.

Goodwill

What does it mean to say that an annual report has been audited?

It bears the signature of a CPA attesting that the document is an accurate reflection of the financial condition of the firm.

Which type of fund invests specifically in short-term securities?

Money market funds

Which of the following is a liability of Eggs4U, an online free-range egg supply company?

Money owed for purchased chicken feed

What is a unique, defining feature of a Roth IRA?

No tax is paid on the distribution of funds when it is drawn at retirement.

Owners' or Stockholders' equity ______.

can come from past profitable operations or from money investors have given the firm

Of utmost importance to management is/are _____, which is the movement of money through a firm on a daily, weekly, monthly, or yearly basis.

cash flow

A money market fund is a type of ______.

mutual fund

_____ buy and sell stocks, bonds, and other securities for their customers. Merrill Lynch and Charles Schwab are examples.

Brokerage firms

Which of the following are considered nonbank financial institutions? (Select all that apply)

Brokerage firms, Insurance companies, Finance companies, Pension funds

Which of the following is considered the most important component of an annual report?

CPA's signature

_____ is the movement of money through an organization over a daily, weekly, monthly, or even yearly basis.

Cash flow

Which of the following are members of the U.S. banking system? (Select all that apply)

Commercial banks, Mutual savings banks, Credit unions, Savings and loans

The economic recession that began in 2007 and lasted into 2012 resulted in the passage of the ______ which raised the required capital that banks had to hold on their balance sheet and limited certain types of high-risk trading activities.

Dodd-Frank Act

The _____ was established in 1933 and insures individual bank accounts for Americans.

FDIC

the _____ was established in 1933 and insures individual bank accounts for Americans.

FDIC

True or false: Organizational budgets are always prepared on a monthly basis.

False

Which nonbank financial service is most closely associated with the use of premiums?

Insurance Companies

What type of specialist helps firms underwrite new issues of securities they need to raise money in the capital markets?

Investment bankers

Financial statements prepared by accountants would be used by which of the following stakeholders of a business? (Select all that apply)

Investors Managers Government agencies Creditors

Which of the following is NOT a characteristic of the FDIC?

It insures accounts up to $1 million.

Which of the following statements is true about the taxation of a Roth IRA?

It is not taxed when the funds are withdrawn at retirement.

Which of the following scenarios most warrants an organization using a "bottom-up" budget?

Larger, fast-growing organizations

Accounting data is first entered in a(n) ______

journal

Debts that a firm owes to others are called ?.

liabilities

The goal of double-entry accounting is to ______.

maintain the balance of the accounting equation

The internal use of accounting statements by managers in planning and directing the organization's activities is known as ? accounting.

managerial

The internal use of accounting statements by managers in planning and directing the organization's activities is referred to as ______.

managerial accounting

A budget that covers the entire firm and not just individual departments is called a(n) _____ budget.

master

All of the following describe mutual funds EXCEPT ______.

mutual funds have a high guaranteed rate of return

Mostly found in New England, ______ were originally established to provide a safe place for savings of particular groups of people, like fishermen.

mutual savings banks

An IRA is a type of ______.

pension fund

An accountant that is employed by a large corporation, government agency, or other organization to prepare and analyze their financial statements would be called a(n) ______ accountant.

private

All of the following are commonly used forms of EFT EXCEPT ______.

savings and Loans

The ? ? Administration collects funds from payroll taxes paid by employers and employees and makes payments to eligible citizens who receive benefits.

social security

The first step of the accounting cycle is to examine ? documents, like checks, credit card receipts, and other evidence concerning specific transactions.

source

Select from the following all the ways that managers and business owners use financial statements. (Select all that apply)

to assist in reporting to the IRS, for reporting information to employees, to aid in internal planning & control

As it relates to banking, which of the following is TRUE about the financial crisis and economic recession that began in 2007 and lasted into 2012?

The consolidation of larger banks accelerated.

Who owns and controls a credit union?

The credit union's depositors

Who collects Social Security funds from payroll taxes paid by both employers and employees?

The federal government

True or false: Personal collateral is required to secure personal loans with finance companies.

True

Double-entry bookkeeping strives to maintain the ______ of the accounting equation.

balance

Edward Jones, Charles Schwab, and Merrill Lynch are some of the largest _____ firms in the United States.

brokerage

A(n) ? is an internal financial plan that forecasts income and expenses of the organization for a set period of time.

budget

The ______ function of the Federal Reserve enables banks to settle demand deposits between member banks.

check clearing

Something pledged as a guarantee that a buyer will repay a loan is referred to as ?

collateral

In the fundamental accounting equation ? = Liabilities + Owners' equity.

assets

Pete and Kathy are looking to buy their first home. What is the name of the loan they will secure to buy their house?

A mortgage

Most large American employers, and many worldwide companies, as well, use _____ to deposit their employees' paychecks directly to employees' bank accounts.

ACHs

Which of the following is an accurate statement regarding the role of an accountant?

Accounting usually requires coursework beyond a college accounting degree.

? funds provide professional financial management for investors without the time and/or expertise to invest in particular securities.

Mutual

What are similar to S&Ls, but, like credit unions, they are depositor owned?

Mutual savings banks

_____ are similar to S&Ls, but, like credit unions, they are depositor owned.

Mutual savings banks

What are monies put aside by corporations and others for the retirement of their employees called?

Pension funds

Which of the following would most likely include a title of controller or internal auditor?

Private accountant

What role do investment bankers play in securities markets?

They assist in the issue and sale of new securities.

The fee that an insurance company charges for coverage is known as _____.

a premium

The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the _______ equation.

accounting

The ? ? is a four-step procedure accounting system.

accounting cycle

Economic resources owned by a firm are called ?.

assets

Nonbanks are financial organizations that do not accept ? but offer many other services provided by regular banks.

deposits

Forensic accountants act much like ______.

detectives

Nonfinancial firms that help finance their customers' purchases of expensive equipment are called ? firms.

diversified

If Caterpillar helps customers finance its expensive equipment, then Caterpillar would be acting as a ______.

diversified firm

Owners' ? includes all the money that has ever been contributed to a company that never has to be repaid.

equity

Businesses that offer short-term loans at substantially higher rates of interest than banks are called ? companies.

finance

The accounting specialty that analyzes financial documents in search of fraudulent entries or financial misconduct and, therefore, is fit for legal review is ______ accounting.

forensic

The accounting cycle is most known as being a _____-step process.

four