BUS10 Chp. 17 – Flashcards
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On a balance sheet, assets are listed in order, from the most liquid to the least liquid
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True
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The accounts receivable turnover estimates the number of times a firm sells and replaces its inventory each year
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False
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The statement of financial position presents the business firm's assets, liabilities, and owners' equity accounts at the end of an accounting period, such as on December 31, whereas the income statement summarized operations during a specified accounting period
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True
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The ending cash balance reported on the statement of cash flows is the same as the net sales amount reported on the firm's income statement
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False
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Today much of the pressure on corporate executives to "cook" the books is driven by the desire to look good to Wall Street analysts and investors
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True
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According to the Occupational Outlook Handbook, job opportunities for accountants, auditors, and managers in the accounting area are expected to experience average growth between now and the year 2018
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False
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Net income is the profit earned (or the loss suffered) by a firm during an accounting period after the cost of goods sold and all expenses have been deducted from revenues
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True
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Accounting information is, first and foremost, management information
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True
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A person who wishes to practice accounting as a CPA must pass an exam prepared by the American Institute of Certified Public Accountants (AICPA)
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True
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According to the accounting equation, cash, inventory, equipment, and real estate are classified as owners' equity
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False
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Dividing current assets by current liabilities gives the current ratio
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True
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Equipment and patents are known as intangible assets
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False
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The certified management accountant exam is designed to develop and measure not only accounting skills but also decision-making and critical-thinking skills
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True
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The form of financial statement used varies for different business, from a neighborhood video arcade to a giant conglomerate
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False
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Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices
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True
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A public accountant works on a fee basis for clients
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True
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Footnotes in accounting documents can offer red flags for investors and should he read and paid close attention to
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True
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The cost of goods sold equals beginning inventory plus net purchases minus ending inventory
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True
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A recent PricewaterhouseCoopers survey revealed that outsiders, primarily customers and intermediaries, are much more likely to be responsible for fraud committed against U.S. businesses
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False
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Often, the ones who are hurt when corporations cook the books are the firm's employees, investors, lenders, and suppliers
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True
