Exam 8: Accounting: Decision Making by the Numbers

Annual reports include _____ that disclose additional information about a firm's operations and special circumstances that clarify and supplement the numbers reported on the financial statements.

Which of the following is an advantage of using bottom-up budgeting?

Which of the following bodies makes U.S. accounting practices more consistent with those in other nations along with the Financial Accounting Standards Board (FASB)?

_________ are costs that are incurred as the result of some specific cost object.

Assets refer exclusively to:

Since it deals strictly with numbers, the practice of accounting is free from ethical obligations.

Felix runs Green Zone Inc., a nursery and landscaping venture. His business flourishes during spring and early summer, but he made most of his inventory purchases during winter of theyear before. Hence, he needs to be extremely careful about cash flow fluctuations. In this case, the capital expenditure budget would be the most beneficial option for Felix.

Established by the Sarbanes-Oxley Act of 2002, it is the responsibility of the _____ to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

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

Which of the following best defines cost?