Exam 17: Financial Information and Accounting Concepts

Accounts payable is an example of a long-term liability.

Balance sheet presents a firm's financial position on a particular date.

Generating a(n)________ is a function of financial accounting.

The Sarbanes-Oxley Act outlaws ________.

Compare and contrast quick ratio and current ratio.Which one do you think is more accurate?

Which of the following is an example of a fixed asset?

Compare and contrast different types of financial ratios.

Robert Consultants was incorporated in the year 2010.The company is now performing a formal evaluation to ensure and certify the integrity and reliability of the company's financial statements.This formal evaluation is referred to as ________.

Sarbanes-Oxley Act prohibits companies from testing their internal financial controls and processes.

External auditors are independent accounting firms that provide auditing services for public companies.

The GAAP aims to ________.

Identify the legislation that prohibits investment bankers from influencing stock analysts and requires CEOs and CFOs to sign statements attesting to the accuracy of their financial statements.

Net income refers to profit earned or loss incurred by a firm.

Quick ratio is a measure of a firm's long-term liquidity.

Describe cost of goods sold and operating expenses.

The Sarbanes-Oxley Act requires ________.

Transferring net revenue and expense account balances to retained earnings for the period is referred to as ________.

Rambo Footwear is a Chinese shoe manufacturing company.The company spends a large amount to buy machinery for a new plant that it has set up.Instead of adding this in the current year's expense the company's accounting spreads the cost over a period of fifteen years.This accounting practice of spreading costs is called ________.

Intellectual property and goodwill are considered liabilities in accounting.

Activity ratios analyze ________.