Exam 12: Small Business Accounting: Projecting and Evaluating Performance

Which of the following is not something a manager needs in order to make good decisions?

Which of the following is true of the differential revenues and expenses method?

A financial plan for the future based on a single level of operations is called a(n):

Activities involved in producing and selling goods and services are called _____ activities.

The cost of goods sold budget shows the predicted cost of product actually sold during the accounting period.

Which of the following is true of accounting equation?

Which of the following reconciles the net increase or decrease with the beginning cash balance and the ending cash balance?

Which of the following is true of managerial accounting?

The process of determining the effect of price and quantity changes on revenues and expenses refers to:

Cash flow statements can be either direct statements or indirect statements.

Identify and briefly describe the five basic accounting concepts.

Liquidity is a measure of the ability of a business to meet both short-term and long-term obligations.

Financial flexibility of a business is a matter of judgment,whereas financial strength is an objective assessment.

Which of the following is more indicative of a business's financial strength?

Formal summaries of the content of an accounting system's records of transactions are called _____.

The sum of all profits and losses,less all dividends paid since the beginning of the business is called:

Which of the following is a difficulty that arises in understanding and interpreting the income statements?

_____ is a measure of how quickly a company can raise money through internal sources by converting assets to cash.

One of the difficulties in understanding and interpreting the income statements is the dispute over when one should recognize revenues.

Define the terms liquidity,financial flexibility,and financial strength.Explain the difference between financial flexibility and financial strength.