Exam 8: Accounting: Decision Making by the Numbers

The current liabilities of a company are reflected in the:

_____ provide analysis and prepare reports and financial statements for their organization.

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Which of the following is true of government accountants in the United States?

In the context of financial statements of a company, cash flow statements commonly begin with _____.

Harold, a financial accountant in a company, is asked to identify the changes in the company's account values between 2014 and 2016. To get the required information, he uses comparative financial statements, which state the figures for the two years side by side. These comparative financial statements make it easier for Harold to identify the changes that may have taken place during that period. In this scenario, Harold is most likely using _____ to get the required information.

The overstating of needs or setting low budget goals by managers in a budgeting process can result in _____.

In the context of the calculation of the net income of a firm, the final step of the process comprises:

The net income of a company is calculated by subtracting expenses from revenue.

Which of the following is an example of an intangible asset?

The difference between a firm's revenue and its cost of goods sold is its accounts receivable.

A _____ is one that is not based on a single assumed level of sales and enables managers to make meaningful comparisons between actual costs and budgeted costs.

The management of an electronics company created the annual budget on a single assumed level of sales. This level of sales is to remain constant for the whole year. Later, the management finds it difficult to accurately measure the financial progress of the firm as the values in the estimated budget vary significantly from the actual sales. In the given scenario, the management most likely created a _____.

Briefly describe few of the key users of a firm's accounting information.

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant.

In the context of financial accounting, briefly describe the role of the Financial Accounting Standards Board (FASB).

In the context of accounting, which of the following best defines cost?

Miller is the owner of a restaurant that has several franchises. One of the franchisees owes Miller a sum of $18,000 for the goods that he had bought from Miller on credit. In this scenario, the money owed to Miller is known as _____.

The _____ summarizes the financial results of a firm's operations over a given period of time.

Pastello, a bakery in New Jersey, needs to sell all the goods in its inventory before they perish. The bakery owners, Mark and Julia, plan to use the cash received from selling the goods to open a new outlet of Pastello in a different locality. In this scenario, the goods stored in Pastello's inventory represent its _____.