Accounting/Budgets
A good _____________ is beneficial because it provides a way to monitor progress, it provides goals and plans of action, it fosters better communication and coordination among of various departments
Budget
Key numbers that financial managers use to calculate ratios usually come from the firm's ______________ and _______________
balance sheet and income statement
In a business, there are two broad sources of financing for a firm are
owners and lenders
One of the purposes of the ___________________was to
prevent relationships that created conflicts of interest between CPA firms and the firms they audit
Sarbanes-Oxley Act of 2002
ally works for Swictek Industries. Her primary responsibilities involvement management of the firm's working capital and analysis of long-term investment opportunities for Swictec. Sally's job is
Financial management
The Accounting formula is
Assets = Liabilities + Owner's Equity
The major output of financial accounting is a set of statements including the _________________, _________________ and _________________.
balance sheet, income statement, and statement of cash flows
Earnings per share is calculated by ??
net income minus preferred dividend payout, divided by the number of shares
The Financial Accounting Standards Board was set up to make the U.S. accounting practices what?
more consistent with those of other nations
At Sips and Chips, a local cybercafe, a financial manager has calculated the debt to equity ratio and discovered it is equal to one. This means...
Sips and Chips is relying on equal amounts of debt and equity financing
The process of developing the operating budget begins with what?
Sales Budget
When do a firm's current liabilities need to be paid
less than a year
The ____________ is an index based on the adjusted average price of stocks of 30 major corporations picked by editors of the Wall Street Journal.
Dow Jones Industrial Average
To provide shareholders with relevant, reliable, consistent, and comparable financial information, the accounting profession has adopted ____________ to guide the practices of financial accounting.
GAAP - generally accepted accounting principles
The CFO of Dorf Motors, Inc recently mentioned in an interview that a dollar received today is worth more than a dollar received in the future because the sooner you receive sum of money the quicker you can put it to work. The CFO is referring to
time value of money
_________ accountants provide services such as tax preparation, external auditing, or management consulting.
Public
Profit is the difference between
Revenues and expenses
What is a benefit to investing in mutual funds as opposed to stock market?
Diversification
A law enacted in the aftermath of the financial crisis of 2008=20009 that strengthened government oversight of financial markets is known as ______.
Dodd-Frank Act
Stuart wants to buy some additional stock in Admiral Engines, but the price of the stock has fluctuated in recent days. He wants to make sure he doesn't pay too much. His analysis suggests that $26 per share is the highest price he should pay. Stuart is likely to place a ___________ with his broker.
Limit order
In its sales budget, BigBux Inc. indicates that in the second quarter it expects to sell 64,000 units of a product at $4.00 each. What is the projected sales revenue for this product?
$256,000
The balance sheet will show __________ , which are things the company owns.
Assets
Return on equity (ROE) and earnings per share (EPS) are both classified as ____________ ratio.
Profitability
The first major federal law regulating the securities industry is known as _________________.
Securities Act of 1933
Greg is a recent graduate with this accounting degree. He has also sat for and passed the CPA exam. At his new accounting position at Get With It.com, Inc, he notices that depreciation expense is not calculated in what he understands to be an acceptable accounting method. Greg has decided to approach his supervisor and clarify what he believes to be a discrepancy in standard practices. To make his case, he should refer to
GAAP - generally accepted accounting principles