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Exam 8: Accounting: Decision Making by the Numbers

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Question 51

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Iang aai bnsatl atnhcee a sshseetest ,o of w thnee rfsir' meq. uity indicates the claims a firm's owners have

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Question 52

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Generally accepted accounting principles (GAAP) are a set of accounting standards used in the preparation of financial statements.

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Question 53

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Generally accepted accounting principles (GAAP) are adopted in managerial accounting to provide accounting information to managers of specific departments.

The preparation of operating budgets begins with the development of a sales budget.

Accounts receivable is categorized as a(n) _____.

Describe out­of­pocket and implicit costs.

Activity­based costing involves two stages. The first stage is to identify specific activities that create indirect costs and determine the factors that drive the costs of these activities.

Copyrights and trademarks are tangible assets.

Revenue is the difference between the net income a firm earns and the expenses it incurs in a given time period.

What is activity­based costing? Describe the two­stage process of activity­ based costing.

Which of the following indicates what a firm owes its creditors?

The Taylix Company's balance sheet showed $18,000,000 in assets and $10,000,000 in liabilities. From the given information, the firm's owners' equity equals $6,000,000.

Established by the Sarbanes­Oxley Act of 2002, it is the responsibility of the _____ to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

Budgets that communicate an organization's sales and production goals and the resources needed to achieve these goals are known as _____.

Management, internal, and government accountants are business titles used by certified public accountants.

On an income statement, which of the following measures the profit or loss of a firm?

An out­of­pocket cost is an implicit cost.

The ability to understand accounting information is not valuable to a person investing in a business.

Which of the following represents assets on a balance sheet with a limited useful life that are subject to subtraction of accumulated depreciation from the original value?

Sally is an employee of EcoTrans Inc. Her duties include preparing reports and analyzing company accounting data. She also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sally's role is that of a _____.