Exam 8: Accounting: Decision Making by the Numbers

Yvonne's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Yvonne is a _____.

In activity­based costing, product costs are assigned based on links between activities that drive costs and _____.

Assets = Liabilities + Net Income.

Which of the following would be listed in the liabilities section of the balance sheet?

The purpose of generally accepted accounting principles (GAAP) is to ensure that financial statements are relevant, reliable, consistent, and comparable.

The Sarbanes­Oxley Act of 2002 prohibited business relationships that might create conflicts of interest between CPA firms and the companies they audit.

To make a financial forecast, Rob needs the debt, cost, and profit statistics of all branches of the Tyndale Corporation. Based on the information that he needs, Rob is a _____.

The first step involved in deducting costs from revenue is to deduct costs of goods sold.

Nathaniel is the financial manager for his company. He is comparing income statements from the past three years to identify trends in the cost of goods sold and other expenses. Nathaniel is using the _____ method to compare financial statements.

The Financial Accounting Standards Board (FASB) establishes the _____ used in the practice of financial accounting.

Which of the following is needed for CPA firms to perform audits with integrity?

Information provided by managerial accounting is available to the general public.

Which of the following statements is true of management accountants?

In accrual­basis accounting, expenses:

The CFO of Hawking Bros. Production requests his accountant Artie Anderson to prepare a customized report of the cost overruns at the company's production facility in Florida. Artie is a managerial accountant.

Steve's business checking account is short on cash. He calls his accountant to determine his profits for the previous month. The income statement is his best source of information to ascertain his profit and loss.

What are the unqualified, qualified, and adverse opinions of auditors? Discuss them in detail.

Net operating income is the difference between a firm's revenue and its cost of goods sold.

Discuss bottom­up budgeting. What are its advantages and disadvantages?

Jobs performed by accountants do not require expertise in complex subject areas