Exam 14: Accounting and Financial Statements

_____ is the total amount of money received from the sale of goods or services,as well as from other business activities such as the rental of property and investments.

Deviations between expected operating expenses and _____ serve as a "feedback loop" to launch more detailed financial analyses in an effort to pinpoint trouble spots and opportunities.

An account that represents all unpaid financial obligations incurred by an organization is called:

Which of the following equations is equivalent to the accounting equation?

Depreciation,a type of expense account,is included in the:

Total asset turnover:

Do-It-Yourself Home Repair Shop started the accounting period with $10,000 worth of shovels in inventory.During the accounting period,it purchased $5,000 worth of shovels and sold $7,500 worth.In this scenario,what is the cost of goods sold?

Inventory turnover is calculated by:

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the:

Which of the following represents a firm's liability?

The _____ is a stringent measure of liquidity.

Accounting refers to the process of:

Which of the following is a liability in a balance sheet?

What are the fundamentals of the accounting process?

_____ compare current assets to current liabilities to indicate the speed with which a company can turn its assets into cash to meet debts as they fall due.

Which of the following equations is used to calculate return on equity?

_____,a category of cash flow,is calculated from changes in the long-term liability accounts and the contributed capital accounts in owners' equity.

Which of the following is the first step in the accounting cycle?

At the end of each accounting period,the dollar amounts in all the revenue and expense accounts are moved into an account called _____.

_____,a category of cash flow,is calculated from changes in the long-term or fixed asset accounts.