Exam 15: Understanding Accounting and Financial Statements

Professionals who are responsible for gathering,recording,reporting,and interpreting the financial information of an organization are known as _____.

Complete the following using the terms listed. -Proponents of _____ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

The CEO of an online retail store plans to share all financial information with the company's employees.The CEO believes that in doing so,employees will understand how they contribute to the success of the company.The CEO,in this scenario,is implementing _____.

An accountant employed by a business other than an accounting firm is called a management accountant.

Complete the following using the terms listed. -A(n)_____ is employed by a business other than a public accounting firm.

Double-entry bookkeeping refers to the process by which accounting transactions are recorded.

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

Zane Corporation sells $1,000 worth of goods on July 25 on credit.The customer sends the company a check on August 15.The customer receives the goods on September 1.Assuming the company uses accrual accounting,the sale will be recorded in _____.

What is accrual accounting? How does depreciation affect net income and cash flow?

Diana asked her accountant to prepare a summary of the company's "bottom line." What specific information is Diana interested in?

Scott Corp. ,an apparel company,has total assets worth $8,500.The owners' initial investment in Scott Corp.stood at $4,000,and profits that were not paid out to owners over time was at $2,000.Calculate the total liabilities.

Not-for-profit organizations use only public accountants.

Public accountants are typically employees of the firm for which they are providing services.

All organizations perform three basic business activities.List and describe these activities.

Assets can include intangible possessions such as patents and trademarks.

Daily business decisions are generally unaffected by accounting information;long-term decisions,however,are affected by accounting information and the interpretation of financial reports.

The assets seen in a balance sheet are in descending order of _____.

Complete the following using the terms listed. -A(n)_____ is anything of value owned or leased by a business.

Cash budgets are typically prepared on a weekly basis.

_____ activities focus on selling goods and services.