Exam 8: Accounting: Decision Making by the Numbers

Which of the following is true of balance sheets?

Tania, a management accountant in a cosmetics company, is asked by her manager to calculate the profit or loss earned by the company in a given time period. To get the required data, Tania is most likely to:

The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.

Through the establishment of a set of generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are:

Fred, a financial accountant at a multinational company, is asked by his supervisor to find out the exact income the company earns from the sale of its products over the next five weeks. To do this, for the next five weeks, Fred matches the revenue earned from the sale of the company's products and matches the expenses incurred by the company to the revenue they help produce. In this scenario, which of the following has Fred used to get the required information?

In the context of statement of cash flows, cash flows from operating activities show the amount of cash that flowed into the company from:

To preserve independence and impartiality, the Financial Accounting Standards Board (FASB) members are required to:

Which of the following statements is true of activity-based costing (ABC)?

Clausel Inc., a furniture manufacturing company, receives a bulk order from a multinational company for 150 office chairs. To complete the order on time, Clausel Inc. speeds up its production process by hiring additional labor and purchasing more supplies. In this scenario, the costs incurred by Clausel Inc. for hiring more labor and buying more supplies exemplify its _____.

Rolette Clemens is a financial institution that provides loans to businesses. It rejects a textile company's request for a loan after it reviews the value of the company's assets, liabilities, and owners' equity and finds them to be unsatisfactory. In this scenario, Rolette Clemens most likely analyzed the company's _____ to assess its financial condition.