Exam 14: Using Financial Information and Accounting

The _____ refers to the process of generating financial statements, beginning with a business transaction and ending with the preparation of the report.

The _____ is a summary of the money flowing into and out of a firm.It is used to assess the sources and uses of cash during a certain period of time

Profitability ratios measure how well a firm uses its assets.

The ratio of net profit to the number of shares of common stock outstanding is called the:

_____ are those expenses related to marketing and distributing of a company's products.

Why do U.S.accountants follow generally accepted accounting principles (GAAP)?

_____ accounting provides financial information for managers within the firm to manage, budget, and analyze the progress of the firm.

_____ is the calculation and interpretation of financial ratios using data taken from the firm's financial statements in order to assess its condition and performance.

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

Accounting involves the _____ of the financial activities for firms.

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

The final figure or bottom line on an income statement is called the net revenue.

______ is the final figure or bottom line of an income statement.

_____ is arrived at by subtracting current liabilities from current assets.

What are the two types of expenses that are shown on a company's income statement?

_____ earnings are the amounts left over from profitable operations since the firm's beginning.

_____ are independent accountants who serve organizations and individuals on a fee basis.

International accounting standards:

The last step in the accounting cycle is to:

What is the first step in the accounting cycle?