Exam 13: Small Business Accounting: Projecting and Evaluating Performance

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

Define the terms liquidity,financial flexibility,and financial strength.

A(n)______ is something you owe someone else.

It is common to create the budgeted income statement in only a fiscal period format.

Identify and briefly describe the five basic accounting concepts.

Statement of cash flows is also referred to as the statement of financial position.

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

Which among the following is a variable cost?

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

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

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

Variance analysis is the process of determining the effect of price and quantity changes on revenues and expenses.

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

Barb's Bakery Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep. -Which of these statements would describe what Barb's Bakery owns,what it owes to others,and how much value Barb has invested in it?

Which of these refers to the concept that a business is expected to continue in existence for the foreseeable future?

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

The _____ is also called the Statement of Financial Position.

Which income statement format is preferred by most owners and managers of small businesses?

Estimated or hypothetical financial statements are called

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