Financial Statements
Assets, liabilities, and equity are recorded on this financial statement.
What is the balance sheet?
A customer bought 5,000 dollars of product on credit from XYZ Company. These two accounts will be impacted by this transaction.
What are accounts Receivable and sales?
This involves the calculation of activity rate and application of overhead costs to products based on their respective activity usage.
What is activity based costing?
When the amount of resources are insufficient to meet wants in the society
What is scarcity?
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10 percent, and the growth rate of the world economy begins to escalate. The simultaneous occurrence of these events affect the equilibrium price and quantity in the world petroleum market in this way.
Price will increase, but quantity is indeterminate.
In a period of rising prices, this inventory valuation method would generally yield both the lowest ending inventory value and the lowest net income figure.
What is LIFO?
Beginning Inventory + Purchases - Ending Inventory
What is cost of goods sold?
This cost accounting system accumulates manufacturing costs separately for each process.
What is a product costing system?
Current assets less short-term liabilities refers to this term.
What is net working capital?
The following would most likely occur as a result of the United States government’s imposing tariffs on foreign steel imports.
The price of steel produced in the United States would decrease.
The price of imported steel in the United States would decrease.
Employment in the United States steel industry would increase.
Government tax revenue would fall.
Employment in the United States steel industry would increase.
In the statement of cash flows, the section for cash flows from operating activities will include one of the following.
Dividends paid, issuance of common stock, a decrease in accounts payable, or purchase of a building financed entirely by a mortgage
What is a decrease in accounts payable?
Slide 4
700
The practice of substituting an expected cost for an actual cost in accounting records.
What is standard costing?
A firm that would like to know whether it has enough cash to meet its bills would be most likely to use this category of financial ratios.
What is liquidity?
The following is an appropriate Federal Reserve action to stimulate the United States economy.
Selling government bonds on the open market
Increasing the discount rate
Reducing the reserve requirement
Cutting taxes
Reducing the reserve requirement
Slide 2
$108,000
Slide 5
625
The method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit.
What is cost, volume, and profit analysis?
When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or royalty, the process is termed as this.
What is licensing?
In an economy the unemployment rate is 10 percent, and the inflation rate is 1 percent. An appropriate fiscal policy in this phase of the business cycle would be to
increase government spending
Net income flows into this financial statement.
What is the balance sheet?
Slide 3
$5,080
Fixed costs divided by contribution margin
What is break-even point?
An economic system where a central governing authority dictates the levels of production and the prices.
What is a command economy?
If the spread between the spot and forward exchange rates of two currencies equals the interest rate difference between the two countries, this phenomenon is referred to as
purchasing-power equality
commodity arbitrage
currency hedging
interest-rate parity
interest-rate parity