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Managerial Accounting
Financial Accounting
Assets
Ratio Analysis
GENERAL
100
Managerial Accounting provides information to interested stakeholders outside of the business. True or False.
False.
100
Is it internal or external?
External
100
List examples of different types of assets.
Current, fixed, intangible
100
What are the three different forms of ratio analysis?
Liquidity, leverage, and profitability
100
What is the nickname for accounting?
The Language of Business
200
Who uses the information?
Managers of the company
200
Who uses this information?
stakeholders and interested people in the health of the company
200
What does the profitability ratio show?
Shows how effectively the mangers of the business use resources to achieve profit
200
What are the three major activities of a business?
Operations, Investments, and financing
300
Is it internal or external?
Internal
300
How often does a company issue an annual report?
Yearly
300
What is the difference between current liabilities and long-term liabilities?
Current payments that are due in a year or less and long term liabilities are due in longer than a years time.
300
What is a liquidity ratio used for?
Used to measure how quickly assets can be turned into cash
300
What form of accounting does Goodwill use?
Not-for-profit accounting
400
What do people use this information for?
To make informed decisions about the business/company
400
What is an annual report?
A yearly statement of the financial condition, progress, and expectations of an organization
400
Describe what intangible assets are and give an example.
Things that a company owns that aren't physical. EX: Patens and copyrights
400
Give an example of a profitability ratio.
Basic Earnings per share, Return on sales, Return on equity
400
What is the fundamental accounting equation?
Assets= Liability+Owners Equity
500
Explain at least one idea that Managerial Accounting is concerned with.
-measuring and reporting costs of production, marketing, and other functions -preparing budgets (planning) -checking whether or not units are staying within their budgets (controlling) -designing strategies to minimize taxes
500
What questions does the annual report answer?
•Is the organization profitable? •Is it able to pay its bills? •How much debt does it owe?
500
Describe what liquidity means
How easy it is to turn assets into cash
500
Where does the data for the ratios come from? (What financial statement is it found on)
Balance Sheet
500
How many steps are in the accounting cycle?
6 Steps: Analyze source documents Record Transactions in Journals Transfer journal entries to a ledger Take a trial balance Prepare financial statements Analyze financial statements