BUS 100 Week 8 Ch 11- 12 – Flashcards
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While _____ is concerned with preparing financial statements for external stakeholders according to a fixed schedule, _____ provides information to internal stakeholders on an "as needed" basis.
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financial accounting; managerial accounting
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The major output of financial accounting is a set of statements including the...
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balance sheet, income statement, and statement of cash flows.
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According to the _____ method of accounting, revenues are recognized when they are earned, and payment is reasonably assured
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Accrual-basis
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A(n) _____ is issued if the external auditor does not find any problems with the way a firm prepares and reports its financial statements.
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Unqualified Opinion
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The _____ indicates whether a firm earned a profit or suffered a loss over the past accounting period.
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Income Statement
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The process of developing the operating budget begins with the
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Sales Budget.
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As a _____ you work within an organization, preparing reports and analyzing financial information such as budgets and cost management.
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Management Accountant
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_____ is a technique used by managerial accountants to assign product costs based on links between activities that drive costs and the production of specific products.
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Activity-based costing
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Managerial accounting primarily serves the needs of a firm's
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Managers
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Accountants define cost as
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the value of what is given up in exchange for something.
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Historically the most widely accepted goal of financial management is
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maximizing the value of the firm to its owners.
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Key numbers that financial managers use to calculate ratios usually come from the firm's...
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balance sheet and income statement.
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One drawback of offering credit customers more time to pay is that it can
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Delay the receipt of cash the firm needs to pay its obligations.
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A(n)_____ measures the extent to which a firm relies on debt to meet its financing needs.
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Leverage ratio
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For financial managers to be socially responsible, it requires them
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to make a long-term commitment to the needs of many stakeholders.
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_____ consist(s) of the stocks of goods, materials, parts, and work-in-process that firms hold as part of doing business.
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Inventory
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Financing provided by a firm's owners is classified as _____ financing.
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Equity
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Financial managers use _____ to assess the financial strengths and weaknesses of their firm.
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ratio analysis
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Financial capital refers to funds a firm would use for all of the following EXCEPT
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Taking a vacation
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Which cash equivalent raises funds by selling shares to large numbers of investors and then pools these funds to purchase short-term, liquid securities?
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Money market mutual funds
