1
The Balance Sheet, the Statement of Cash Flows, and the
______________ are three key financial statements prepared by
accountants.
Income Statement
A ___________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities.
statement of cash flows
Sales receipts, purchase orders, and payroll records are all examples of accounting transactions that would be recorded by a(n):
a.
auditor.
b.
forensic accountant.
c.
purchasing agent.
d.
bookkeeper.
d.
bookkeeper.
The area of accounting that provides managers inside the
organization with information they need to make decisions is called:
managerial accounting.
A(n) _________ is a yearly published statement of the financial condition, progress and expectations of an organization.
annual report
Which of the following presents an effective technique to improve cash management?
a.
Speed up both collections and payments of cash
b.
Speed up cash collections and slow down cash payments
c.
Speed up cash payments and slow down cash collections
d.
Slow down both the payment and collections of cash
A. Speed up both collections and payments of cash
Depreciation is a systematic write-off of the cost of a tangible asset
that is listed on
the balance sheet
A _________ forecast predicts the future cash inflows and outflows in future periods.
cash flow
A bookkeepers first task is to:
Select one:
a.
interpret and report data to the firms management.
b.
summarize the firms financial data.
c.
prepare the firms financial statements.
d.
separate all of the firms transactions into meaningful categories.
D. Separate all of the firm's transactions into meaningful categories.
One of the challenges of effective financial management is:
Select one:
a.
to have sufficient cash on hand without compromising the firms investment potential.
b.
providing the financial data in a timely manner for management consultants to improve decision making.
c.
working within the strict regulations of the Financial Accounting Standards Board (FASB).
d.
ensuring the satisfaction of each of the stakeholder groups.
A. to have sufficient cash on hand without compromising the firms investment potential.
When using ________ financing, the company incurs a legal obligation to repay the amount borrowed.
debt
________ is a form of short-term financing. Businesses buy
merchandise from their suppliers, but are not required to pay for their purchases until some future date.
a.
Factoring
b.
Revolving credit
c.
Secured credit
d.
Trade credit
d.
Trade credit
The purpose of a trial balance is to:
affirm whether the figures in the account ledgers are correct and balanced
An effective budget requires:
Select one:
a.
accurate forecasts.
b.
stakeholder consensus.
c.
management approval.
d.
a successful advertising campaign.
A. accurate forecasts
The _____ shows the assets, liabilities, and owners equity of a firm, at a specific point in time.
Balance sheet