Exam 13: Business Organization and Financial Data

Assets needed to carry out the normal operations of the business.

Agency costs do not include:

Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

The U.S. federal government, through the Financial Accounting Standards Board (FASB), oversees the accuracy and truthfulness in public company financial statements.

The actual disbursement of cash is recorded in which of the following financial statements?

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

All of the following accounts are considered to be current assets on the balance sheet except:

Which of the following is not part of the accounting focus?

Responsible for the controller and the treasury functions of a firm.

Cash and all other assets that are expected to be converted into cash within one year.

Liabilities + Owners' equity

The liability of all owners in both a limited liability company and a limited partnership is limited to the owners' investment in the company.

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

Accounting is primarily concerned with matching revenues and expenses while finance focuses on identifying cash inflows and outflows.

For companies, depreciation is deductible from income before taxes.

Often, gross revenues are larger than net revenues.

The 2002 Sarbanes-Oxley Act was designed to:

Accounting practices and procedures used to prepare financial statements are called:

Many of the CEOs of Inc. 500 companies own more than 50 percent of the equity in their businesses.

Two broad groups of assets are identified on the balance sheet: liquid and non-liquid.