exam 4 chapter 17

carls car care business tht sells autoparts. each month, carl adds up the money the store brought throught the various part it has sold to customers. carl is calcutaing _

revenue

if financial management is the heartbeat of competitive business, what keeps it stable

accounting information

recording, classifying, summarizing, and interprating financial events in an orgnaiztion is called_

acounting

the first step in accounting cycle is _

analyze source documents

what are some benefits of using computers for accounting purposes

it frees acountants time for more important tasks

software can help if no strong accounting personnel is available

information can be posted from journals instantaneously

because they indicate a firms financial health+ stability, the use of _are key factors in management decision making

financial statements

the ability to read, udnerstand, and analyze accounting reports and financial statements is critical in understanding_

business operations

using the accounting equations, is assets=40000 and libailities = 30000, then whats owners equity

10,000

what are three activities that are part of the accounting function

classify financial transactions

interpret

record

assets, liabilities, and owners equity are major accounts listed on

a balance sheet

list the accounting cycle from start to finish

analyze source documetns

record transaction journals

transfer journal entries to ledger

perpare financial statement

anaylze financial statement

_ are economic resources by a firm

assets

in accounting, liabilities are refeffed to

debts a business owes others

the income statement shows_

a firm profit(or loss) after costs, expenses, and taxes

the relationship amongst assets, liabilities, and owners equity is the fundamental concept in accounting known as the _ equation

accounting

the formula for the costs of goods sold is _

purchase price+freight charges +storage costs

in operating a business, rent ,salaries, utilities, and insurance are all example of _

operating expenses

gross profit is what a company shows on their income statement as the bottom line figure

false

the statement of cash flows is a financial statement that shows_

cash recipts and disbursements

its possibel for a business to increase its sales and profits yet stil suffer _ flow

cash

what term describe the cost of merch the firm sells?

costs of goods sold

calculating and interpreating financial ratios developed from the firms finanacial statement is called _

ratio analyses

operating expenses include which of the following

rent, supplies, utilities

liquitidy ratios measure a companys ability to _

turn assets into cash to pay its short-term debts

net income or loss is _

all revenues minues all expenses and taxes

levarage or debt ratios measure the degree to which a firm relies on _

borrowed funds

return on equtiy is ner income minus taxes divided by _

total owners equity

cash flows especially important for which of the following_

small businesses

the ratios that measure the effectiveness of a firm management in turning over inventory are called..

activity ratios

what are four main type of financial ratios used in ratio analysis

activity ratios, liquidity, debt ratios, profability ratios

what are considered disciplines withing the accounting profession

tax, managerial, financial, auditing, government and not for profit accounting

stakeholders who want to look at detailed financial information on whether a company is profitiable, is able to pay its bills, and how much debt it owes will look at the firms

annual report

the information and analysis that comes from managerial accounting is used to _

assist managers inside the org with their decision making

reviewing and evaluating records used to prepare a companys financial statement is referred to as_

auditing

a _ accountant is trained in law and is responsible for perparing tax returns or developing tax strategies

tax

governemtn and nonprofit accounting involes working for orgs whose purpose is to serve_

taxpayers, ratepayers, legisltive bodies, special interest groups

managerial accounting is used to provide info to _

those inside the firm