chapter 14

True or false: An expense statement provides an explanation of how the company's cash changed from the beginning of the accounting period to the end.

False

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

Private accountant

Cash from ______ activities is calculated by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.

operating

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

Organizations evaluate their operations through the recording, measurement, and interpretation of financial information. This process is known as _______.

accounting

The ___________ cycle, is a four-step procedure accounting system.

accounting cycle

Cost of goods sold is calculated by using ______.

beginning inventory, interim purchases, and ending inventory

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

budget

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

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies is ______.

cost of goods sold

The process of spreading the cost of a tangible asset over its estimated useful life is referred to as ______.

depreciation

Depreciation is considered a type of ______.

general & administrative expense

By its very design, the ______ offers one of the clearest possible pictures of the company's overall revenues and the costs incurred in generating those revenues.

income statement

Which report summarizes an organization's profitability over a specific period, which may be a week, a month, or a year.

income statement

Debts that a firm owes to others are called

liabilities

The goal of double-entry bookkeeping is to ______.

maintain the balance of the accounting equation

Revenue is defined as ______.

sales plus other money coming into the firm

The ______ explains how the company's cash changed from the beginning of the accounting period to the end.

statement of cash flows