Generally accepted accounting principles are _____ Set by individual companies Created by government agencies Based on international standards Developed by accounting rule makers

Developed by accounting rule makers

Financial and Accounting Concepts for Business Students

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Finance - Personal Finance

charlotte1oxhi Created by 10 mon ago

Cards in this deck(100)

The ability a company has to pay its debts in the short run is its _____

Which of the following is a measure of the liquid position of a corporation? _____

Which of the following ratios is used to measure a firm's leverage? _____

Which of the following ratios is used to measure the profit earned on each dollar invested in a firm? _____

The emphasis in financial accounting is on which of the following external user groups? _____

The primary internal group that uses accounting information is _____

Internal reports are generally used by _____

Which of the following is NOT an external user of financial information? _____

Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? _____

Generally accepted accounting principles are _____

The initials GAAP stand for _____

The current standard-setting board for accounting in the private sector is the _____

The organization that develops worldwide accounting standards is the _____

The initials CPA stand for _____

Which of the following is NOT a service typically provided by large public accounting firms? _____

Standards established by the International Accounting Standards Board are referred to as _____

Which of the following is the government agency that stipulates the rules and regulations that govern the collection of taxes in the United States? _____

Which of the following is NOT a reason for the integration of worldwide accounting standards? _____

The International Accounting Standards Board (IASB) is charged with developing worldwide accounting practices? _____

With the current state of information technology, investors outside a company are now allowed access to a company's internal database of financial information and do their own customized analysis of a firm's performance. _____

Increased federal oversight of the audit process resulted from the passage of the following act of Congress - _____

A borrower benefits from providing financial information regarding income and expenses in the form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to repayment. _____

Which of the following is NOT one of the three primary financial statements? _____

One reason for a company's preparing and providing financial statements is to reduce uncertainty for an investor regarding the firm's future financial performance. _____

Which of the following accounts is considered to be the most liquid? _____

Which of the following types of accounts are NOT found on the balance sheet? _____

The financial statement that reports resources owned, the obligations to transfer resources to other organizations, and the claims by the entity's owners is known as the _____

The idea that the activities of the entity are to be separated from those of the individual owner is the _____

The basic accounting equation is _____

Which of the following would be included on an income statement? _____

Costs that are incurred during the normal operations of a business to generate revenues are called _____

Another name for the income statement is _____

Revenues cause _____

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n) _____

Which of the following activities would NOT be classified as an investing activity? _____

A major source of cash from operating activities is _____

Which of the following classifications refers to those activities associated with buying and selling long-term assets? _____

Which of the following classifications does NOT appear on the Statement of Cash Flows? _____

Vital information that CANNOT be captured solely by dollar amounts is reported in a firm's _____

Which of the following is NOT one of the four general types of financial statement notes? _____

Which of the following is an example of a significant accounting policy that would be explained in the notes to the financial statements? _____

Which of the following is an example of a disclosure of information NOT recognized that would be explained in the notes to the financial statements? _____

Which of the following is an example of additional information about summary totals that would be explained in the notes to the financial statements? _____

An independent audit report is usually issued by _____

In completing an audit of a company's financial statements, auditors _____

The accuracy of the information contained in the financial statements is the responsibility of the _____

Which of the following are the two economic factors that enable us to trust an independent auditor despite the fact that the auditor was hired by the company being audited? _____

The idea that certain figures on an operating statement help to explain changes in figures on comparative balance sheets is referred to as _____

The idea that information becomes more useful when it can be related to a benchmark or a standard is referred to as _____

The notion that when doubt exists concerning two or more reporting alternatives, users should select the alternative with the least favorable impact on reported income, assets, and liabilities is referred to as _____

Whether an item is big enough that proper accounting will make a difference to users of accounting information is referred to as _____

The notion that information will be more useful if it will impact a decision is referred to as _____

If a corporation has total assets of $350,000, total liabilities of $150,000, and retained earnings of $100,000, what is the amount of capital stock? _____

Which of the following is generally considered to be an asset? _____

Which of the following generally is NOT considered to be a liability? _____

Which of the following decreases owners' equity? _____

The total amount invested to acquire an ownership interest in a corporation is called _____

Current assets usually are listed on a balance sheet in _____

Which of the following accounts would NOT be considered a current asset? _____

In non-U.S. Balance sheets, you will often see each of the following EXCEPT: _____

This is sometimes done in place of recognition when the effects of an event cannot be quantified with any degree of certainty. _____

The process of determining the dollar value to assign to an item that is to be recognized in the financial statements is called _____

Historical cost has long been used in accounting because it is _____

The process of formally recording an item in the accounting records so that it will be reflected in the financial statements is called _____

Reporting the details of a transaction in the notes to the financial statements is called _____

When an investor pays cash into a business to become a part owner, the effect on the accounting equation for the business will be to _____

When a company buys a warehouse by using a mortgage with a local bank, the effect on the accounting equation for the company will be to _____

When a company borrows money from a bank to be repaid over time, the effect on the accounting equation for the company will be to _____

When a company purchases equipment on credit, the effect on the accounting equation will be to _____

When a company rents a warehouse by paying for the first six month's rent in advance, the effect on the accounting equation on the day of payment would be to _____

A company's asset mix is determined by _____

A company's asset mix is strongly influenced by _____

Financing mix is a measure of _____

The number used to reflect an overall measure of the change in a company's wealth during the period is - _____

A measure of a company's performance that is intended to summarize in one number the overall economic performance of a company in a given period is - _____

A measure of a company's performance that includes all items that are expected to continue into the future is - _____

Earnings per share is equal to _____

With a single-step income statement all revenues are grouped together, all expenses are grouped together, and net income is computed as the difference between the two. _____

When revenue and expense items are arranged to highlight important profit relationships, the resulting income statement format is called a - _____

With a multiple-step income statement all revenues are grouped together, all expenses are grouped together, and net income is computed as the difference between the two. _____

Under the general rule of revenue recognition, revenue is recognized when _____

Which of the following is NOT an acceptable basis for the recognition of expenses? _____

Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period? _____

Costs that can be reasonably associated with specific revenues but NOT with specific products should be _____

A wholesale bakery would normally recognize revenue when _____

Analysis of revenue and expense transactions requires the use of the: _____

Thus far, the only national government to adopt the accrual basis for its official accounting system is _____.

Which of the following statements is true regarding retained earnings? _____

_____ is/are not considered to be an expense of doing business.

_____ is increased and _____ is decreased when cash is collected from customers who had previously purchased a product or service on account.

Most forecasting exercises begin with a forecast of _____.

If a company anticipates a 40% increase in sales volume, then it is most likely that the company will need about a 40% increase in _____.

The statement of cash flows _____

The statement of cash flows replaces the _____

Which of the following is NOT a purpose of the statement of cash flows? _____

Which of the following statements is NOT true? _____

Which of the following would be reported as a cash flow from financing activities? _____

Which of the following would be reported as a financing activity on a statement of cash flows? _____

Which of the following would NOT be included in the operating activities section of the statement of cash flows? _____

Significant noncash financing transactions _____

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