Exam 12: Small Business Accounting: Projecting and Evaluating Performance

What are the limitations of a balance sheet?

_____ activities include the acquisition and disposal of property,plant,equipment,and investment securities of other firms.

An implication of the bounded rationality models of management is that:

Which of the following accounting functions focuses the most on automatically calculating and accumulating depreciation?

_____ is the most used item on the income statement.

_____ is an accounting approach based on specific accounting requirements set by governmental taxing agencies.

_____ is a formal,rule-based set of accounting principles and procedures intended for use by outside owners,investors,banks,and regulators.

Strategic planning is the process through which strategy is mapped into a series of tactical and operational actions.

Financial statements containing estimated or hypothetical information are called:

The first step in preparing a master budget is to prepare a _____ budget.

Most investors and all banks expect to be provided financial statements that meet the rules of _______.

Which of the following statements is true regarding the balance sheet?

The primary reason to acquire and use a computerized accounting system in your business is to ensure the accuracy of your accounting information.

Expenses are the value given up to obtain something that the owner wants.

Which of the following statements is true when setting up your accounting system?

Which of the following ratios is used to estimate the liquidity of a business?

The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is:

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

By limiting the information about financial concerns,the complexity of managerial accounting has been increased.

The usefulness of the income statement for managing a small business is related to the amount of detail available in the statement.