Exam 15: Using Management Information Systems and Accounting Information

The statement of financial position presents the business firm's assets, liabilities, and owners' equity accounts at the end of an accounting period, such as on December 31, whereas the income statement summarizes operations during a specified accounting period.

The ratio that averages about 2.0 for all industries is the

Dividing current assets by current liabilities gives the current ratio.

The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n)

Kim's Copy Shop is in the process of organizing its assets in the appropriate order. They ask you for help in arranging the following assets: equipment, accounts receivable, cash, merchandise inventory, and notes receivable. You list ____ first and ____ last.

Write the accounting equation. Then define each term.

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Numerical or verbal descriptions that usually result from measurements of some sort are known as

In 1987, the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) required all publicly traded companies to include a statement of cash flows along with the balance sheet and income statement in their annual report.

​Most corporations include important elements of their financial statements ___ in their annual reports to permit readers to compare financial data.

Which of the following statements is true?

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio?

General Motors decides to close one of its manufacturing plants in the Midwest. GM sells the facility to a new foreign automobile manufacturer. The money GM receives from this sale would belong in the ____ section of the statement of cash flows.

​John's business has more expenses than it has revenues this year; therefore, his business has a

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as

For the previous year, Sambino's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues. Sambino's

Resources that a firm owns are classified as assets.

All of the following are current assets except

Operations managers need management information in all of the following areas except

A person who wishes to practice accounting as a CPA must pass an exam prepared by the American Institute of Certified Public Accountants (AICPA).