FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Understanding Accounting and Financial Information

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 181

True/False

Review LaterAdd Note

Review Later

Although a firm may use different inventory valuation methods,generally accepted accounting principles GAAP)states that these methods must produce the same dollar value for the cost of goods sold.

Correct Answer

verified

Show Answer

Question 182

Multiple Choice

Review LaterAdd Note

Review Later

The __________ is a six-step procedure that results in the preparation and analysis of the major financial statements.

A) double-entry method
B) financial management process
C) financial performance appraisal
D) accounting cycle

Correct Answer

verified

Show Answer

Question 183

Multiple Choice

Review LaterAdd Note

As U.S.firms focus on cost cutting in order to stay competitive with producers in low-wage countries,they will rely on __________ to create strategies to help reduce costs.

Jill wants to start her own business,but knows little about how to set up an accounting system or interpret financial information."I'm not worried about accounting," she tells her friends."I'll just hire a part-time bookkeeper to handle all that type of stuff,and focus my attention on what I like-finding ways to satisfy my customers." Which of the following is the best response to Jill's comments?

Taylor Casual,a chain of retail clothing stores,wants to assure investors and other outsiders that its financial statements are accurate.One way to do so would be to hire a public accounting firm to:

As a certified public accountant,you would be working in the area of managerial accounting.

The balance sheet reports revenues and selling costs for a period of time.

A bookkeeper's first task is to:

Cash flow difficulties are unlikely for a firm that is profitable.

Once a trial balance has been prepared,the next step of the accounting cycle involves:

The debt to owners' equity ratio is a common type of liquidity ratio.

The sole purpose of accounting is to help managers evaluate the financial condition of the firm so that they may make better pricing decisions.

In the Spotlight on Small Business box titled,"What's Coming and Going at the College Bookstore?" the passage explained that accounting for profits may differ,depending upon___________________.

Accounting provides information about the financial condition and operating performance of a firm.

The accounting profession is divided into two main fields: bookkeeping and auditing.

Revenue on the income statement represents the dollar amount of what is received for goods sold,services rendered and/or from other revenue sources.

An income statement reports what a company owns and owes on a certain day.

Accounting,as the language of business,is solely concerned with providing information useful to managers of profit-seeking firms.

What is the difference between a journal and a ledger? How are journals and ledgers incorporated into the accounting cycle?

Discuss the role of an independent auditor.Provide information about the types of accounting activities they perform and the recent laws that have emerged to help guide them as they do their job.