Exam 16: Accounting for Financial Success

List three measures of a company's liquidity.

Which of the following deals with reporting to outsiders?

Liabilities or debts are what a company owes to its creditors.

Selling expenses are those related to marketing and distributing the company's products.

A current asset is one that can or will be converted into cash within one year.

Which of the following are temporary investments of excess cash in bonds and shares that can readily be converted into cash?

What are amounts owed to the company by customers who bought goods and services on credit?

Ratios that measure a company's ability to pay its short-term debts as they come due are called activity ratios.

What is the accountant's term used to describe the $15,000 Petra Jabon borrowed to turn her carport into a closed garage?

What is another term for owners' equity?

An accounting journal is a chronological list of transactions, each assigned to a particular account.

Another term for net worth is working capital.

Which of the following is an account that is often used to analyze financial transactions and is named after a letter?

Which of the following is often used to measure a company's overall liquidity even though it is not really a financial ratio?

Which of the following is an accounting framework that that not only includes financial information but also accounts for environmental and social impacts?

The speed with which an asset can be turned to cash is called convertibility.

All publicly held companies must include a statement of cash flows in their financial reports to shareholders.

After all expenses have been subtracted from revenues on an income statement, if the final figure is positive, it is known as which of the following?

Cost of goods sold is the total expense of buying or producing the company's goods or services.

The statement of cash flows divides the company's cash flow into three groups. Name them.