Chat with AIExam 15: Financing and Tracking Business Operations
Assets are the amounts that a companies owes to its creditors.
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Distinguish between managerial accounting and financial accounting.
(37) VerifiedManagerial accounting is responsible for tracking sales and the costs of producing the sales (production, marketing, and distribution). Managerial accountants help determine which business activities are most and least profitable. In addition, by monitoring the activities involved in planned budgets, managerial accountants help determine and anticipate in what areas the company strays from its budgeted expectations. Financial accounting is an area of accounting that produces financial documents to aid decision makers outside an organization in making decisions regarding investments and credibility. Investors and shareholders rely on financial accounting to help them evaluate a company's performance and profitability.
Imagine that you have just completed your first budget as a new financial manager. How will you make sure that your company follows the budget?
(30) VerifiedAfter the budget is developed, it must be compared periodically to the actual performance of the company. It is very important that management compare actual performance regularly to the budget. This generally occurs every month. Without such a comparison, it is hard to determine whether the company is actually performing as expected. If the actual numbers generated by the company closely match the budget, this shows the company is fulfilling its plans. On the other hand, if the actual numbers differ greatly from those projected by the budget, this indicates that corrective actions must be taken.
CFO Jorge Sierra needs short-term financing for a large corporation. He decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days. Jorge is using ________.
(31) Robin Airline's long-term leases of its jets are examples of current liabilities.
(37) Liquidity is the speed at which assets can be turned into ________.
(35) In MOST companies, accounting is the only responsibility of the finance department.
(42) Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company's current ratio is ________.
(43) Your boss asks you what was the bottom line on last year's results. You refer your boss to the ________ line on the income statement.
(31) Why should shareholders and prospective investors monitor earnings per share closely?
(41) All of the following are parts of the foundation of financial management EXCEPT ________.
(49) Because of growing customer demand, Dave and Michelle want to double the size of their store. How can accounting help?
(40) Adam Zarand wants to help his company decide whether or not to shut down an unproductive plant. Which type of accounting will he MOST LIKELY use?
(36) Jason Prows' job this week is to prepare a spreadsheet that shows his company's long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n)________ budget.
(36) On a balance sheet, the difference between cash and cash equivalent figures between periods is the same value that appears at the bottom of the ________ for the same period.
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