Using Financial Information and Accounting

Which of the following describes the process of reviewing the records used to prepare financial statements and issuing a formal opinion on them?

The Sarbanes-Oxley Act of 2002 was passed in response to numerous corporate financial scandals. Which of the following is a key provision of this act?

What is the fundamental accounting equation?

Which financial statement summarizes a firm’s financial position at a specific point in time?

On a balance sheet, assets are listed in order of their liquidity. Which of the following is considered the most liquid asset?

What does the 'cost of goods sold' on an income statement represent?

Which financial statement provides a summary of the money flowing into and out of a firm over a period of time?

Ratio analysis is used to assess a firm's financial condition. What do liquidity ratios measure?

What is the primary difference between a public accountant and a private accountant?

On the balance sheet for Delicious Desserts, Inc. as of December 31, 2018, the total assets are $148,900. What is the total for liabilities and owners' equity?

Which type of asset are patents, copyrights, trademarks, and goodwill?

The allocation of a long-term asset's original cost to the years in which it is expected to produce revenues is known as what?

On the income statement for Delicious Desserts, Inc. for the year ending December 31, 2018, what were the total operating expenses?

What is the term for the amounts left over from profitable operations since a firm's beginning, calculated as total profits minus all dividends paid to stockholders?

Which of the following would be categorized under 'cash flow from financing activities' on a statement of cash flows?

A company has a net profit of $32,175 and net sales of $270,500. What is its net profit margin?

The acid-test (quick) ratio is similar to the current ratio but excludes which current asset to provide a more stringent measure of liquidity?

Which activity ratio measures the speed with which inventory moves through the firm and is turned into sales?

For the Windsor Gift Shop, sales were $195,000 and the cost of goods sold was $98,000. Total operating expenses were $51,600 (calculated from rent, salaries, utilities, supplies, advertising, and interest). What was the shop's net profit before taxes?

What is the term for the six-step process that begins with analyzing business transactions and ends with analyzing financial reports?

According to the financial information for Delicious Desserts, Inc., what is the company's total for Current Liabilities?

What does the debt-to-equity ratio measure?

For Delicious Desserts, total liabilities are $70,150 and owners' equity is $78,750. What is the company's debt-to-equity ratio, expressed as a percentage?

Financial statements are the chief element of the annual report. What are the three primary financial statements included in the annual report?

What is the term for the accounting process where data are collected over a period of time and then processed together, such as in payroll processing?

A decision support system (DSS) is a management support system that helps managers make decisions by using what tools?

In the context of the balance sheet, which of the following is an example of a current liability?

What is the result on an income statement if a company's expenses exceed its revenues?

A company reports a net profit of $32,175 and has 10,000 shares of common stock outstanding. What are its earnings per share (EPS)?

In the accounting cycle, what is the purpose of preparing a trial balance?

Which of the following describes assets that are long-term, used by the firm for more than a year, and include items like buildings and machinery?

According to the Delicious Desserts balance sheet, the company's total assets are $148,900 and its total liabilities are $70,150. What is the value of the owners' equity?

What is the first step in the six-step accounting cycle?

Gross profit is a critical number for a company because it is the source of funds to cover which of the following?

Which ratio measures the return that owners receive on their investment in the firm?

The accounting profession in the U.S. has seen significant changes due to major trends. Which of the following is identified as a major trend affecting the industry?

For the Windsor Gift Shop, sales were $195,000, cost of goods sold was $98,000, total operating expenses were $51,600, and taxes were $12,120. Calculate the shop's final net profit.

What is the term for a yearly document that describes a firm's financial status and usually discusses its activities during the past year and its prospects for the future?

What does a current ratio of 2 traditionally signify?

The process of using sophisticated database applications to look for hidden patterns in a group of data to track and predict behavior is called what?

Using the data for Delicious Desserts, which has an inventory turnover of 6.8 times per year, approximately how many days does it take for inventory to be turned into sales?

When a company pays more for an acquired firm than the value of its tangible assets, what intangible asset is created on the balance sheet?

Which of the following describes 'net sales' on an income statement?

Which two professional certifications are mentioned for accountants, one for public accounting and one for managerial accounting?

What is net working capital, and what does it measure?

Calculate the net working capital for Delicious Desserts, given that its total current assets are $83,200 and its total current liabilities are $60,150.

Which of the following is considered an 'activity ratio'?

The statement of cash flows divides a firm's cash flows into three groups. Which group is related to the purchase and sale of fixed assets?

What is the primary focus of financial accounting?

If a company has total liabilities of $180,000 and a debt-to-equity ratio of 89.1 percent, what is the approximate value of its owners' equity?