Exam 7: Accounting: Decision Making by the Numbers

What technique is used by managerial accountants to assign product costs based on links between activities that drive costs and the production of specific products?

What is the income statement equation?

Which of the following refers to the method of accounting where revenues are recognized when they are earned and payment is reasonably assured?

Which of the following is concerned with preparing financial statements for external stakeholders according to a fixed schedule?

What is the body of principles that guides the financial accounting process used to create financial statements?

Publicly traded firms with complex changes in their operations may report these changes in the notes section of their annual report.

List and describe at least three users of a firm's accounting information.

Discuss how financial accounting compares to managerial accounting in the following three areas: (a) Type of information presented, (b) Timing of reports, and (c) adherence to accounting standards.

Which of the following indicates whether a firm earned a profit or suffered a loss over the past accounting period?

Which companies are required to follow the IFRS?

Which of the following has the purpose of verifying that a company's financial statements were properly prepared in accordance with accounting standards?

Expenses are listed on the left side of a balance sheet.

Current ratio is calculated by dividing current assets by current liabilities.

Identify and describe the four goals of International Financial Reporting Standards (IFRS).

How do many firms view their management accounting systems?

Where are the results of an external audit shared?

In order for accounting firms to perform external audits that meet the needs of stakeholders, what must the firms do?

Pierre's Gourmet Foods produces high-quality desserts and appetizers that are distributed by upscale grocery stores. When assigning production costs to its various food products, in which category are the costs of ingredients used to make a product?

Through IFRS, accountants aim to ensure that financial statements are standardized in such a way to allow users to track the firm's financial performance over a period of years and compare its results to those of other firms.

The current ratio helps financial managers evaluate the ability of a firm to pay short-term liabilities as they come due.