Exam 12: Small Business Accounting: Projecting and Evaluating Performance

_____ is an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service.

Which of the following statements concerning the income statement is true?

Legal obligations to give up things of value in the future are known as _____.

The difference between an actual and budgeted revenue or cost is called:

Which of the following accounting concepts has roots in the Mesopotamians who lived and kept records 5,000 years ago?

To perform _____ analyses,only cash flows are considered.

Which of the following is not one of the primary criteria for a small business's record keeping system?

Financial accounting is forward-looking and attempts to predict the results of management decisions.

_______ are the accounts of assets,liabilities,and owners' equity,excluding accounts for revenues and expenses.

The accounting equation is simply stated as Assets = Liabilities - Owners' Equity.

________ information and reports are used when planning,organizing,staffing,directing,and controlling.

Larry owns a successful business called Super Car-Hire.He plans to sell it to Bob.Bob assumes that he can keep up the high revenues if he can plan and execute the mission of the business well.Which of the following basic accounting concepts is reflected in Bob's assumption?

Lenders use operating income as:

Aaron,a businessman,has a method of keeping track of accounts receivable by sorting them into groups of those that are 30,60,90,and over 90 days past due.Aaron's key in controlling receivables is to have them _____,by sorting them into groups.

_____ is the idea that it is cheaper (per item)to make many of an item than few.

Eddie,the owner of a fast-food joint,finds that he spends far lesser when he bakes breads in dozens than when he bakes two or three loafs at a time.This idea of Eddie's is similar to the concept of:

Which of the following accounting functions has been accurately described?

Briefly explain cost-volume-profit (CVP)analysis.

Which of the following is a statement of what a business owns,what it owes to others,and how much value the owners have invested in it?

The first step in budgeting is to make a forecast of your future sales.