Exam 13: 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.

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

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

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

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

The quantity of items sold times the price expected to be paid for each product is the calculation used for the:

Lenders use operating income as:

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

The decision rule for an NPV analysis is to accept:

Budgeted income statements are always created on a monthly format.

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

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

The "going concern" concept states that:

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

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

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

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

Regular and systematic reduction in income that transfers asset value to expense over time is called _____.

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

Which of the following statements lists revenues and expenses and shows the amount of profit a business makes for a specified period of time?