Exam 7: Accounting: Decision Making by the Numbers

The financing provided by owners is represented on the balance sheet as which of the following

Assets are the tangible and intangible resources of value owned by a firm.

Snow International, a ski company in Canada, has 500 shares of outstanding common stock and has not issued any preferred stock. Net income is $27,500. What would be the earnings per share calculation?

The costs a firm incurs for plant maintenance, quality control, or depreciation on office equipment are usually classified as which of the following?

Where would one find a change to the way a company funds its pension plan for its employees?

Liabilities are resources owned by a firm.

Which type of accounting addresses the needs of external stakeholders, including shareholders, creditors, and government regulators?

Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.

The cash flows received from operations reported in the statement of cash flows should be exactly equal to the revenue the firm reports on its income statement.

Tiny Timber Tree Farms applied to United Bank for a business loan. Which financial statements would the loan officer of the bank be most likely to request?

When do managerial reports get produced?

Mary Chiu is an employee and shareholder for the McNeely Company. Mary is considered a primary user of her firm's accounting information.

At Sips and Chips, a local cybercafé, a financial manager has calculated the debt-to-equity ratio and discovered it is equal to one. What does this indicate about Sips and Chips?

Many of the major firms that were implicated in accounting scandals had a difficult time recovering but after making apologies to the public these firms continued successfully.

What does the statement of cash flows show about a firm?

When managerial accountants assign costs to the production of specific products, which of the following costs are easiest to assign?

A high inventory turnover ratio is bad because it indicates the firm has too much inventory.

Indirect costs tend to be a result of the firm's general operation rather than the production of any specific product.

For what purpose would shareholders be most likely to use accounting information provided by their firm?

Firms must disclose changes in accounting methods that could affect the comparability of the current financial statements to those of previous years.