Ch. 15 Assignment

Certified Public Accountant (CPA)

A _____________ is an individual who has met state requirements for accounting education and experience and has passed a rigorous accounting examination.

Cost of goods sold

A company selling goods subtracts ______ from sales to determine gross profit.

Audit

A company will request a(n) ______ when it wants to determine if its financial statements have been prepared in accordance with generally accepted accounting principles.

Cost Accounting

As part of the accounting process, employees provide managers and employees within the organization with information needed to determine the cost of producing specific products or services. This information is used to evaluate current expenses and to compare them to historic data, international data, and data from suppliers, subcontractors (if any), and other processers (if any) to determine if a less expensive alternative is available that will generate the same product quality. What specific type of accounting is being performed in the beginning of this process? a. Government accounting b. Cost accounting c. Managerial accounting d. Financial accounting

Sarbanes-Oxley Act

Because of several accounting scandals that led to the financial disintegration of large companies and the accounting firms that perpetrated the scandals, Congress enacted the ___________

Operations Manager

Firms require information on a variety of subjects so they can plan for the future, implement the plans, and evaluate the results against historical data. Which of the following managers needs information regarding future sales levels, current inventory levels, and the availability and cost of resources required to produce goods and services? a. Marketing manager b. Financial manager c. Operations manager d. Human resources manager

Owner's Equity

If a firm sold all of its assets and paid all of its bills, what would remain? a. Assets b. Owners' equity c. Liabilities d. Income

Annual Report

Large corporations normally distribute a(n) _________ to stockholders and other interested parties that describes a firm's operating activities and its financial condition.

Knowledge Management

The collection of information about customers, such as their preferences, locations, demographics, and mobility is important for business success. Organizing and using this information is imperative to a business' survival. Which of the following describes a procedure for generating, using, and sharing important data and information? a. Knowledge management b. Expert system c. Database d. Information rule

Annual Reports

Today, most corporations include in their _________ comparisons of the important elements of their financial statements for recent years.

Accounting

What function is an employee of a firm conducting when he or she systematically collects, analyzes, and reports the financial information to the company in the form required to make decisions about a firm's financing, investing, marketing, and operating activities? a. Tax preparation b. Auditing c. Accounting d. Bookkeeping

Present the information to users

What function is being served by employees who take data from a management information system and compile it into a report that includes graphs, charts, and a PowerPoint presentation? a. Present the information to users b. Update data c. Store data d. Process the data into information

Statement of Cash Flows

When a company wants to determine how its operating, investing, and financial activities affect cash during an accounting period, it will have a __________ prepared.

Intangible Assets

When an individual invents a new product and patents it, a writer copyrights and publishes a book, or a company develops a symbol that represents it and has it registered as their own, they have created assets. What type of assets have they created? a. Liquidity b. Current assets c. Intangible assets d. Fixed assets

Human Resources

When considering the specific information needed to make decisions, ___________ managers consider current wage levels and benefits, legislation, and court decisions regarding employment.

Income Statement

When determining if a company has a cash surplus or cash deficit at the end of a specific period of time, one would typically subtract the expenses from the income. This can also be done as the first step in creating a budget. What is the specific name given to the financial document created for a business that would state its profit or loss? a. Statement of cash flows b. Financial statement c. Balance sheet d. Income statement

Relevant Information

When managers are selecting a management information system they must tailor it to the needs of the organization it serves. The information technology officer must make sure that the system provides _______ at a reasonable cost

Information Rule

Which of the following best describes a consistent pattern of cause and effect that can be used in an industry for creating a competitive edge over competitors and improving the firm's profits? a. Decision support system b. Information rule c. Knowledge management d. Database

Cash on Hand

Which of the following best describes the information provided by a statement of cash flows? a. Profit or loss b. Assets, liabilities, and owners' equity c. Revenues d. Cash on hand

Current Ratio

Which of the following should be used to evaluate a firm's ability to pay its current liabilities? a. Return on sales b. Current ratio c. Financial ratio d. Inventory turnover

Information

______________ is the presentation of raw numerical or verbal descriptions in a form that is useful for a specific purpose.