Exam 12: The Role of Accounting in Business

Working in the field of _____ accounting,John Bates furnishes information to individuals and groups both inside and outside his organization to help them assess the firm's financial performance.

Brenda Sinatra is senior analyst at a major Oregon accounting firm. One facet of her job is determining how much of each sales dollar is left after a client has covered certain costs. She’s also responsible for calculating how efficiently a client company’s assets are being managed. Another aspect of her job calls for measuring overall company performance and determining how effectively management is running the company. Finally, she reports on the firm’s financial strength to its board of directors -The last thing that Brenda does is report on financial condition ratios.

A company can assess its financial strengths by analyzing its _____ ratios.

The public accountant examines a company's financial statements and submits an opinion on whether they have been prepared in accordance with _____.

A current loan is due in two years.

The best way to prepare to be an investor is to learn all the _____ that you can.

The difference between your sales and your cost of goods sold is known as your _____.

Its _____ ratio may tell us that a company generated an excellent return on assets in its first year and a good return in its second year.

Your income statement shows how much cash you have coming in and going out.

You can calculate inventory turnover dividing cost of goods sold by _____.

Its debt-to-equity ratio examines the risk entailed by a company's _____.

In September,Sherry's Shoe Mart ordered women's boots from a supplier.The boots were delivered in October,paid for in November,and sold in December.If Sherry uses accrual-based accounting,in which month should she report the boots under Cost of goods sold?