Exam 12: The Role of Accounting in Business

Cash flows from _____ activities result from obtaining or paying back the funds with which you've financed your business.

Holt Industries Ltd.has a(n)_____ loan that's payable in one year.

Interest coverage measures the number of times that a firm's operating income can cover its interest expense.

Gross profit is the money that a company has earned after paying all its expenses.

_____ activities create cash inflows or outflows through the selling or buying of long-term assets.

The relationship between funds acquired from creditors and funds invested by owners is called principal structure.

Your balance sheet shows what your sales and expenses are.

A classified balance sheet lists assets in order of _____.

The annual allocation of the cost of a long-term asset is recorded as a(n)_____.

Accounting can help your business in all of the following ways except:

The system that requires an accountant to record a transaction when it occurs is called immediate accounting.

Often called management or corporate accountants,_____ accountants work either for a single company or government agency.

The key to surviving in business is generating cash to keep operating.

You can regard the "bottom line" and "net income" as the same thing.

_____ shows when your total sales revenues exactly equal your expenses.

Which of the following may cause a company to have cash problems?

When you sell goods,you generate a _____ profit.

Dividing your inventory by your cost of goods sold will yield your inventory turnover rate.

Firms that provide clients with accounting and tax services are called _____ accounting firms.

Contribution margin per unit is the shortage of revenue per unit over variable cost per unit.