Business final exam ch 14
To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:
Generally accepted accounting principles
______deals with reporting to outsiders. ______accounting deals with the internal operations of the firm.
Financial accounting; Managerial accounting
A(n) ____is a summary of what a company has earned and spend over a given period
Income statement
Trademarks, franchises, patents, and copyrights are carried on the company's books as:
Intangible assets
Liability owned by an antique mall
Money owed to utility companies
Which of the following is NOT one of the six steps in the accounting cycle?
Paying accounts payable
Accountants employed within organizations are called:
Private accountants
FASB (Financial Accounting Standards Board) is a:
Private organization that is responsible for establishing financial accounting standards in the US
____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 analysis
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
Which of the following terms equals the total profits of a company minus all dividends (distributions of products) to stockholders?
Retained earnings
________are those expenses related to marketing and distributing of a company's products.
Selling expenses
A(n) ____ is a summary of the money flowing into and out of a firm
Statement of cash flows
A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year
Statement of cash flows
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 manufacturers administrative office building
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
In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n):
Account payable
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
Managerial accounting provides information that would probably be most beneficial to:
A middle manager of the company
Which of the following is an example of an intangible asset for a manufacturer of padlocks?
A patent on titanium lock mechanism
Last step in accounting cycle
Analyze business transaction documents
The first step in the accounting cycle is to:
Analyze business transaction documents
The ____summarizes an organizations financial status at the end of an accounting period
Balance sheet
Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment?
Cans of yellow paint for refurbishing equipment
In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:
Costs of goods sold
____are debts that are to be paid within twelve months
Current liabilities
A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firms financial activities during the past year and its prospects for the future
Annual report
Which of the following calculations is a formal expression of the accounting equation?
Asserts = liabilities + owners' equity