BUSN 101 – Chapter 17 Quiz Review

In a private company's accounting system, inputs are __________ and outputs are _________.

Which of the following describes an activity associated with accounting?

The primary purpose of accounting is to

Buying and selling goods, acquiring insurance and using supplies represent __________ transactions.

Ledgers are used to compile information to complete which of the following?

The accounting cycle is a six-step process that results in

If you were working as a bookkeeper, the first action you would take is to

A specialized accounting book in which information is accumulated into specific categories and posted so managers can find all information about one account in the same place is a

The recording of business transactions is a basic part of financial reporting and is referred to as

Accumulated earnings from a firm's profitable operations that are kept in the business and not paid out to stockholders are called

The fundamental accounting equation is

Small businesses that are just getting off the ground often have problems with the difference between cash coming into the business and cash going out of the business. For example, if the company allows far too lenient credit sales terms, customers do not pay on time, which could cause cash to come in too slowly. That's why all businesses must keep a careful watch on their

Which of the following would be considered a current asset?

Which of the following assets would be considered to be the most liquid (able to convert easily to cash) assets?

If Beck's Bicycles, Inc.'s income statement shows gross profit of $350 million, with operating expenses of $120 million, and if Beck's tax rate is 30%, what is the firm's net income after taxes?

A debt to equity ratio of over 100% would mean

Which of the following is most helpful in analyzing the financial performance of a company?

Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. Her boss asked her to calculate the earnings per share for stockholders. Darby noted that the company's balance sheet showed 44 million shares outstanding. To explain to him that her calculation is correct, Darby's correct response is

Clarissa's boss asked her to determine if their company is operating with too many borrowed funds. Which ratio will Clarissa utilize to help her with her decision?

The following information is listed on Beck's Bicycles, Inc.'s balance sheet as of 12/30/2016. AssetsLiabilitiesCurrent Assets$3,000,000.00Current Liabilitites Cash 2,000,000.00Accts. Payable$12,000,000.00Accts. Receivables 9,000,000.00 Inventory Total current Assets$14,000,000.00Total Current Liabilities$12,000,000.00 Fixed Assets$125,000,000.00Long-Term Debt$75,000,000.00

__________ accounting is used to provide information and analysis to managers within the firm to assist them in decision making.

A Certified Public Accountant (CPA) is

In order for information to be meaningful, a firm's accounting processes and procedures should be certified as accurate by acceptable accounting standards. Companies hire ________ to provide unbiased opinions about the accuracy of a firm's financial statements.

What legislation created new government reporting standards for publicly traded companies?

Jim Hopson is an accountant who works for a number of businesses as a consultant. He has helped to design an accounting system, provides accounting services, and has analyzed the financial strength of many of his clients. Jim is working as a