Exam 14: Using Financial Information and Accounting

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.

Accounting provides a framework for looking at:

Amounts owed to the firm by customers who bought goods and services on credit are called:

Toys "R" Us was founded in 1948.The iconic mascot Geoffrey the Giraffe was introduced in February 1960.Geoffrey used in all ads and promotions used by the retail toy chain is an example of a(n) _____ because it does not have a physical existence.

The ratio of total current assets to total current liabilities is called the _____ ratio.

Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May.Sales discounts amounted to $18,000.There were no returns.The difference, $102,000, is Nevada Silver's:

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

_____ is the company's ability to expense fixed assets over their useful life.

Fixed assets are property and buildings that a firm expects to use for more than:

The ratio of net profit to total owners' equity is called return on:

Assume a company has inventory valued at $50,000, its total current assets, including this inventory, total $90,000.Its total current liabilities total $20,000.Its quick ratio is:

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

What are the two types of reports generated by accounting systems?

The five-step process that takes a transaction from being mere raw financial data to its being summarized in the financial statements is called the accounting cycle.

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:

The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short-term debts as they come due are called _____ ratios.

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

A _____ is the financial statement that is based on the accounting equation and summarizes a firm's financial position at a specific point in time.

Land, buildings, machinery, equipment, and furniture are called __________ assets.