Exam 15: Using Management and Accounting Information

Maddie is the CEO of Stevenson,Ross,and Warner (SRW) ,a regional accounting firm.SRW offers services in most areas of accounting,including auditing and consulting services.The firm must follow the GAAP rules,just like any other accounting firm.If there are information gaps that are not addressed and resolved by the firm,SRW could be considered a violator of the Sarbanes-Oxley Act.Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations.Like any other industry,accounting is a competitive industry and employees of accounting firms must be productive,progressive,and well trained. -Refer to Stevenson,Ross,and Warner.In order to be successful in the accounting industry,SRW employees must

If you wanted to evaluate the financial condition of Target Stores,a leading discount chain,you would most likely compare its financial ratios to ____ ratios.

Maddie is the CEO of Stevenson,Ross,and Warner (SRW) ,a regional accounting firm.SRW offers services in most areas of accounting,including auditing and consulting services.The firm must follow the GAAP rules,just like any other accounting firm.If there are information gaps that are not addressed and resolved by the firm,SRW could be considered a violator of the Sarbanes-Oxley Act.Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations.Like any other industry,accounting is a competitive industry and employees of accounting firms must be productive,progressive,and well trained. -Refer to Stevenson,Ross,and Warner.If you applied for a job at SRW and were asked to state the accounting equation,which of these would you state?

If a company has $50,000 of assets,which of the following could be true?

A(n)____ is a summary of a firm's revenues and expenses during a specified accounting period,such as a year.

In your own words,describe the relationship between information and risk and how this relationship could impact the business decision-making process.

The term ____ describes assets that can be quickly converted into cash or consumed in one year or less.

The ratio that averages about 2.0 for all industries is the

Define a balance sheet (also called a statement of financial position).What does it balance?

ABC Radio pays salaries,rent,insurance,and utilities each month.These are all

Cash,marketable securities,notes receivable,and merchandise inventory are examples of

Alexa's First Job ​Alexa has just earned her undergraduate degree in accounting and has successfully completed the CPA exam.She recently interviewed with a relatively small and new company and was offered a job.The offer sounded very promising;the job had opportunities to grow with the company and provided diverse challenges.Alexa accepted the job. Once Alexa started working,she realized that the owners and employees did not have a general understanding of accounting.She had to teach them the steps in an accounting cycle so they would be able to understand how she was going to create reports.When she talked about the statement of financial position,they had no idea what she was talking about.She was the qualified individual responsible for accounting.No one else working with her had much knowledge.They did not even know the different financial ratios that someone could use to understand the financial standing of a company.Alexa knows it will be a challenge to keep everyone on the same page when it comes to numbers and reports. -Refer to Alexa's First Job.When Alexa explained the asset side of the statement,she included which of the following?

Beginning inventory plus net purchases minus ending inventory equals

Managers often compare financial and accounting data with previous accounting periods and with competing firms.

The specific types of information that managers need depend on their area of management and on their

The statement of cash flows illustrates the effects on cash of the operating,investing,and financing activities of a company for an accounting period.

Describe the three activities of a statement of cash flows.Where does each section fall on the statement and what does it account for?

For Caterpillar,a tractor and farm equipment manufacturer,spark plugs to be installed in its equipment would be classified on the balance sheet as

All of the following are sections of the income statement for a business except

Paris stood by the window of her office in a high-rise office building in New York.From her window,the people on the sidewalk below looked like ants.It had taken her a long time to work her way up into management.She looked across the street at the offices of her company's competitors and wondered what they were planning.The fashion industry was brutal and staying on top demanded long hours,research,and accurate decision-making.Her department utilized the latest software to compile information about the successes and failures at fashion shows throughout the world.They datamined social media sites,competitor's advertising,news articles,fashion magazine articles,and other media to discover what competitors' pricing strategies were,what products they were test marketing,and new and pending product legislation.In addition to compiling information from and about competitors and legislation that may impact future sales,her department collects detailed information about her own firm's products,cost of goods sold,customers,suppliers,and new fabric composition and design.What department does Paris manage?