Exam 14: Accounting and Financial Statements

When Juan's Taco Hut decided to open several new locations, it spent millions of dollars on property and equipment. Which category of cash flow does this best describe?

All of the following are items that are classified as fixed assets EXCEPT

Jack works for the Internal Revenue Service. His main responsibility is rooting out evidence of "cooked books" at major companies. Jack is a ________ accountant.

Brad is an executive of Music Masters, a wedding and special events DJ music service. For years, he successfully hid illegal and misleading accounting practices, but eventually, he was exposed and punished with a jail sentence under the ________ Act.

Carl is using the double-entry bookkeeping system to account for all the transactions during his first month in business as an electrician. All of the following could be specific asset categories for Carl EXCEPT

What represents a commitment of organizational funds of at least one year?

Peeta owns a bakery. She has already gathered and examined the checks, credit card receipts, sales slips, and other related evidence concerning specific transactions. She has also recorded each financial transaction in a journal and transferred that information into a ledger. What must Peeta do at the end of the accounting period?

The purpose of the Sarbanes-Oxley Act was to

Each type of stock sold by a corporation represents a claim on the organization and must be represented by a separate owners' equity account.

Claire is a certified public accountant who provides accounting services to individuals and businesses. Certification gives Claire the right to

How does ratio analysis relate to the income statement and balance sheet?

Kaden works for a publishing company, recording its routine, day-to-day business transactions. His main responsibility is obtaining and recording the information his company needs to analyze its financial position. Based on this description, Kaden is most likely a(n)

Lucia is an accountant who completed coursework beyond a basic four- or five-year college accounting degree. What does Lucia's additional training allow her to do?

Management's greatest single concern is ________, which is the movement of money through an organization over a daily, weekly, monthly, or yearly basis.

Geri's Gift Store wants to compute the revenues and expenses for its most recent accounting period to determine if it is making extra cash that it can use to invest in increased long-term capacity or to pay off its debts. To determine this, Geri should calculate cash from ________ activities by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.

Camila manages a used car dealership that allows customers to buy cars for no money down and pay in installments throughout the year. Her company builds in a bad-debts adjustment that is deducted from the accounts receivable balance to present a more realistic view of the payments likely to be received in the future for these cars. The payments the company expects to receive are called

John is an electrician who runs his own small shop. When tax season comes, he hires an accountant from one of "the Big Four" accounting firms to help him file his business's tax return. In this scenario, John has most likely hired a ________ accountant.

Randall wants to become a certified public accountant. To accomplish this, he must be certified by the ________ in which he plans to provide accounting services.

Qingyi works for a large technology company as an engineer. As an employee, why should he look at his company's financial statements?

Stan's Skateboards doesn't have a lot of inventory. As a result, its ________ ratio is almost exactly the same as its current ratio.