Mgmt

One of the most important internal controls for cash is the bank ____

Reconciliation

Dividends - cash payments to stockholders

a dividend

The asset that is most susceptible to employee fraud is Equipment Cash Accounts receivable Investments

Cash

The entries that transfer the balances of all temporary accounts to retained earnings are referred to as Closing entries External entries Adjusting entries Post-closing entries

Closing entries

The two components of a Stockholders' Equity is Retained earnings and notes payable Assets and liabilities Common stock and retained earnings Revenues and dividends

Common stock and retained earnings

The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources is called occupational ______

Fraud

Land

Land used for operations

The form of business organization where an entity is legally sperate from its owners and issues shares of stock is a

coporation

Current Assets Ratio

current assets/total assets

costs of selling products or services

expenses

Amounts owed

liabilities

owners' claims to resources

stockholders equity

A debit is used to decrease which of the following accounts? a. Salary Expense b. Accounts payable c. Dividends d. Supplies

Accounts payable

Which of the following items are NOT included in cash Balances and checking accounts Accounts receivable from customers Currency and coins Cash in savings account

Accounts receivable from customers

To complete the measurement process, companies need to update balances of assets, liabilities revenues and expenses for changes created by ____ entries.

Adjusting

Permanent accounts

All accounts that appear in the balance sheet, account balances are carried forward from period to period

Temporary accounts

All revenue, expense, and dividend accounts; account balances are maintained for a single period and then closed (or zeroed out) and transferred to the balance of the Retained Earnings account at the end of the period

Rent Expense - Cost of rent

An expense

Permanent

Assets, Liabilities, Equity

Primary functions of accounting

Communicate information to decision makers Measure a companies activites

The two roles of financial accounting are to: Report cost accounting information for internal decisions Communicate information to external parties for decision making purposes Measure business activities of the company Measure and report results to taxing authorities

Communicate information to external parties for decision making purposes Measure business activities of the company

Which of the following items are included in cash? Balance in checking accounts Notes receivable Currency and coins Checks from customers Accounts receivable from customers

Currency and coins Checks from customers Balance in checking accounts

In a double-entry accounting system, the ____ represents the left side of the account

Debit

The post-closing trial balance checks that total ____ equal total ____ at the end of the period

Debits Credits

Which type of account is increased with debit? Liability Stockholders' Equity Revenue Expense

Expense

True or false: The two functions of financial accountings are to measure business activities and prepare tax returns?

False

companies communicate information about their business activites primarily through

Financial Statements

The private sector organization that is currently responsible for setting accounting standards in the United States is the

Financial accounting standards board

A company's plans to safeguard company assets and enhance the reliability and accuracy of accounting information are referred to as Security controls Protective controls General controls Corporate regulations Internal controls

Internal controls

Which of the following includes the list of transactions affecting each individual account and the account's balance? Account Ledger Journal

Ledger

what of the following are attributes of FASB

Private sector organization Independence Full time board members

The purpose of a general ledger is to Record a chronological listing of the accounts used by a particular company Provide in a single location the list of transactions affecting each account and the account's balance Record all transactions for a particular item

Provide in a single location the list of transactions affecting each account and the account's balance

The purpose of a journal is to Maintain a balance for each account Record all transactions for a particular item Record a chronological listing of every transaction for a company

Record a chronological listing of every transaction for a company

At year-end, companies that utilize accrual-based accounting systems complete the measurement process through Recording of adjusting entries Posting of non-cash transactions occurring during the year The preparation of an unadjusted trial balance Conversion to cash-basis

Recording of adjusting entries

Closing entries move the balances from the ___ accounts into the Retained Earnings account Permanent Temporary Balance sheet

Temporary

Closing entries

Transfer the balances of all temporary accounts (revenues, expenses, and dividends) to the balance of the Retained Earning account

A list of all accounts and their balances at a particular date showing that debits equal credits is referred to as a(n)

Trial balance

resources of a company

assets

Which of the following is possible for a particular business transaction? a. Increase Assets; Decrease liabilities b. Decrease assets; Increase stockholders equity c. decrease assets; decrease liabilities d. decrease liabilities; increase expenses

c. decrease assets; decrease liabilities

ratio of current liabilites

current liabilities/total liabilities

An advantage of the corporate form of organization is that a corporation: a. Is not regulated b. Does not have to pay its creditors c. Is not taxed d. Provides limited liability

d. Provides limited liability

Distribution to stockholders

dividends

To be useful for decision making, information should possess the fundamental qualities of relevance and _____ representation

faithful

Information that best explains companies' stock price performance is reported in the ____ ____

income statement

A small amount of cash on hand to pay for minor purchases is commonly referred to as a(n) ____ _____ fund

petty cash

Careers for accounting professions typically include a choice between public and ___ accounting

private

Sales of products or services

revenues

The accounting equation is

Assets = Liabilities + Stockholders' Equity

Independent intermediaries that help to ensure that management appropriately applies financial reporting rules in preparing the company's financial statements

Auditors

The statement of stockholders' equity includes these amounts Total revenues for the period Ending balance retained earnings Cash Net income Dividends for the period

Ending balance retained earnings Net income Dividends for the period

The two major categories reported in the income statement are Expense Assets Revenue Equity

Expense Revenue

A(n) ______ transaction involves an exchange between the company and a separate economic entity

External

Independent, private-sector group that is primarily responsible for setting financial reporting standards in the United States

FASB (Financial accounting standards board)

True or false: A balance sheet is a list of all accounts and their balances showing that debits equals credits?

False

A classified balance sheet _____ Contains confidential information Groups asset and liabilities into current and long-term categories Shows changes in assets, liabilities, revenues and expenses Shows only current assets and current liabilities

Groups asset and liabilities into current and long-term categories

A primary purpose of adjusting entries is to record events that Have occurred but that have not yet been recorded Will occur at the beginning of the next period Have been recorded incorrectly

Have occurred but that have not yet been recorded

Which of the following are common controls over cash receipts? Reducing the amount of total sales to customers Having two different employees take custody of the checks and make the deposit Opening mail daily and making a detailed list of checks received Placing one trusted employee in charge of all cash related activities

Having two different employees take custody of the checks and make the deposit Opening mail daily and making a detailed list of checks received

Body that is attempting to develop a single set of high-quality, understandable global accounting standards

IASB (International Accounting Standards Board)

Revenues and expenses are reported in the Balance sheet Statement of cash flows Stockholders' equity Income statement

Income statement

The statement of stockholders' equity included these amounts Total revenues for the period Net income Ending balance retained earnings Cash dividends for the period

Net income Ending balance retained earnings Cash dividends for the period

How do temporary accounts differ from permanent accounts? Only permanent accounts are found on the financial statements Only permanent accounts are transferred to Retained Earnings during the closing process Only temporary accounts are used in the adjustments at the end of the accounting period Only temporary accounts are cleared out at the end of the accounting period

Only temporary accounts are cleared out at the end of the accounting period

How do temporary accounts differ from permanent accounts? Only temporary accounts are used in the adjustments at the end of the accounting period Only permanent accounts are transferred to Retained Earnings during the closing process Only permanent accounts are found on the financial statements Only temporary accounts are cleared out at the end of the accounts period

Only temporary accounts are cleared out at the end of the accounts period

Effective internal control over cash requires segregations of duties. Which of the following duties should be segregated? Accepting credit cards and accepting cash Opening the mail and making a list of checks received Opening the mail and deposit of checks in the bank Depositing checks into the bank and recording receipts in the accounting records

Opening the mail and deposit of checks in the bank Depositing checks into the bank and recording receipts in the accounting records

Internal control consists of plans to Report misuse of company assets to investors Safeguard company assets Report management errors to police Provide accurate and reliable accounting information

Report misuse of company assets to investors Safeguard company assets Provide accurate and reliable accounting information

Which of the following are stockholder equity accounts? Notes Payable Retained Earnings Common Stock Accounts Receivable Inventory

Retained Earnings Common Stock

Which type of account is increased with a credit? Revenue Asset Dividend Expense

Revenue

Under cash-bashed accounting Revenues are recorded when goods or services are provided Revenues are recorded when cash is received Expenses are recorded when cash is paid Expenses are recorded in the period related revenue is generated

Revenues are recorded when cash is received Expenses are recorded when cash is paid

Temporary

Revenues, Expenses, Dividends

____ are recorded in a the period that goods and services are provided to customers and ____ are recorded in the period that costs are incurred while providing those goods and services Expenses; expenses Expenses; revenues Revenues; expenses Revenues; revenues

Revenues; expenses

Group that has been given power by congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded

SEC (Securities and Exchange Commission)

Smith's operating cash flows in millions were $100, $150, $80 during the past three years; while Jones' operating cash flows in millions were $105, $115, $110 during the same period. From the perspective of operating cash flows, which company would likely be perceived as riskier? Both are about the same Jones Smith

Smith

Which of the following financial statements typically is prepared last? Balance sheet Statement of stockholders' equity Income statement Statement of cash flows

Statement of cash flows

Margot, a prospective investor, wants to know how much cash Ziegler Inc. has on Dec 31st. Margot can find the information in Ziegler's Income statement Statement of cash flows Balance sheet Statement of stockholders' equity

Statement of cash flows Balance sheet

Which financial statement would report all of the following information: Beginning balances for common stock and retained earnings; Current period net income or loss; Current period dividends; Common stock issued during the year; Ending balances of common stock and retained earnings? Balance sheet Comprehensive income statement Retained earnings statement Statement of stockholders' equity Income statement

Statement of stockholders' equity

Accounting professionals enjoy a wide variety of career opportunities

True

True or false: An external transaction is a transaction the firm conducts with a separate economic entry

True

Adjusting Entries

Used to record changes in assets and liabilities (and their related revenues and expenses) that have occurred during the period but that we have not yet recorded

Cash-basis accounting We record revenues at the time we receive cash We record expenses at the time we pay cash

We record revenues at the time we receive cash We record expenses at the time we pay cash

Accounts Payable - Amounts owed to suppliers

a Liability

Interest Revenue - interest earned on savings account

a Revenue

A code or moral system that provides criteria for evaluating right and wrong is referred to as : a. a values moral b. ethics c. Standards d. A dilemma system

b. ethics

Technical accounting skills represent the only skills required of accounting professionals

false