Choose the synonym, according to the chapter
Utilities (The price of utilities has risen steeply in recent years)
a. luxuries
b. electricity
c. public services
d. waste management
e. usefulness
public services
A fee that is paid for financial protection.
a. encryption
b. grace period
c. deductible
d. coverage
e. insurance premium
Insurance premium
Customs
Ex: A custom is a generally accepted pattern of behavior
The accountant inserted a double underline over the net profit of $45,000 to signify the beginning of the income statement
The accountant inserted a double underline below the net profit of $45,000 to signify the end of the income statement
a. It took months for Sarah to learn all the marketing _____ at her new job
b. The lawyer's opening statement was so full of legal _____ that the jury struggled to follow the basic facts of the case
a. It took months for Sarah to learn all the marketing jargon at her new job
b. The lawyer's opening statement was so full of legal jargon that the jury struggled to follow the basic facts of the case
Statement of financial condition (The auditors reviewed the statement of financial condition to verify the company's net worth)
a. intangible assets
b. profit and loss statement
c. cash flow statement
d. income statement
e. balance sheet
Balance sheet
The act of setting stock prices
a. liabilities-based valuation
b. security valuation
c. debt value
d. growth potential
e. debt-to-equity ratio
Security valuation
Working capital
Ex: The store used its positive working capital of $50,000 to buy new inventory and pay rent on time.
The acountant ran a side-by-side comparison of the general ledger and the trial balance to spot eror
The accountant ran a side-by-side comparison of the general ledger[1] and the trial balance[2] to spot errors
[1] Libro mayor
[2] Balance de comprobación
a. Unlike technical analysts, who focus strictly on price charts, the portfolio manager relies on _____ to evaluate the long-term health of a business
b. She used both quantitative data from the balance sheet and qualitative information like brand reputation to complete her _____
a. Unlike technical analysts, who focus strictly on price charts, the portfolio manager relies on fundamental analysis to evaluate the long-term health of a business
b. She used both quantitative data from the balance sheet and qualitative information like brand reputation to complete her fundamental analysis
Juggle the accounts (The former bookkeeper juggled the accounts to hide thousands of dollars in missing funds)
a. falsify accounts
b. embezzle accounts
c. authenticate accounts
d. reveal accounts
e. legalize accounts
Falsify accounts
The act of taking money from an employer's revenue
a. theft
b. fraud
c. sales skimming
d. re-route
e. under-the-table payoffs
Sales skimming
Money-laundering
Ex: The forensic accountant discovered that the business was used for money-laundering by mixing illicit funds with daily sales receipts
The companni was catch cooking the books to hide its large financial wins
The company was caught cooking the books to hide its large financial losses
a. Several city officials were arrested on _____ charges after accepting secret kickbacks to award public works contracts
b. The state government has a long history of _____ and scandal
a. Several city officials were arrested on bribery charges after accepting secret kickbacks to award public works contracts
b. The state government has a long history of bribery and scandal
Current ratio (By dividing its total current assets of $990,000 by its current liabilities of $115,000, the company determined that its current ratio was 8.61)
a. Working Capital
b. Cash Ratio
c. Acid-Test Ratio
d. Working Capital Ratio
e. Quick Ratio
Working Capital Ratio
To exclude or not consider something
a. to bar
b. evaluate
c. examine
d. ponder
e. think twice
To bar
Unforeseen catastrophes
Ex: The firm set aside an emergency fund on the balance sheet to protect its cash flow against unforeseen catastrophes like sudden floods or fires
A long operating cicle mean cash stay tied up in stock.
A long operating cycle means cash stays tied up in stock.
a. The business was pushed into _____ when its creditors submitted a petition to the court
b. After the _____ proceedings began, the assets of the debtor were subject to liquidation
a. The business was pushed into involuntary bankruptcy when its creditors submitted a petition to the court
b. After the involuntary bankruptcy proceedings began, the assets of the debtor were subject to liquidation
Variable overhead (Variable overheads are costs such as utilities that rise and fall with the volume of production)
a. raw materials
b. fluctuating expenses
c. water bill
d. building rent
e. fixed costs
Fluctuating expenses
Categories of production costs into which indirect costs are allocated
a. P&L statement
b. direct materials
c. manufacturing costs
d. cost drivers
e. depreciation
Cost drivers
Fixed overhead
Ex: Even though the factory produced zero widgets during the slow month, the accountant had to record a fixed overhead of $5,000 for the building rent
The factory implementid activity-based costing (ABC) to track its expenses more accurate than traditional labor-hour methods.
The factory implemented activity-based costing (ABC) to track its expenses more accurately than traditional labor-hour methods.
a. _____ is the wages of employees who make a company's products
b. Because consulting firms sell time rather than physical goods, an auditor's billable hours are classified as _____
a. Direct labor is the wages of employees who make a company's products
b. Because consulting firms sell time rather than physical goods, an auditor's billable hours are classified as direct labor.