Exam 13: Small Business Accounting: Projecting and Evaluating Performance

In the context of accounting functions,which of the following is true of accounts receivable?

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

A comprehensive budget is also referred to as the:

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?

_____ is an indicator of the business's ability to manage cash flows so that the company has the fiscal ability to respond appropriately if an unexpected opportunity or problem arises.

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

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

_____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future.

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

The "business entity" concept of accounting indicates that:

Which of the following accounting functions aids in calculation of appropriate stocking and reorder levels?

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

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

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

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

Payroll records ensure that employment taxes are kept current.

_____ 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.

Variable costs decrease if output increases.

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