Business final

Your boss asks you to email a spreadsheet that shows what the company owns and what it has borrowed (owes) at a fixed point in time and shows the net worth of the business. When sending the email, you most likely will attach the file named ______? Balance_sheet
The amounts spent by a publishing company to pay for manufacturing its books is called ____? Cost of good purchased
Accounting involves a great deal of precision and some degrees of interpretation, therefore, accounting is ________? Both an art and a science
FASB stands for ______? Financial Accounting Short- Term Budget
In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction must also affect a liability or owners equity. Sandra is using ________ bookkeeping? Double Entry
You are a financial manager. Your assistant tells you that there will be a cash flow gap next month, meaning that cash outflows are expected to be _______ cash inflows? Greater Than
Numbers used to compare current data to data from previous years, competitors’ data, or industry averages is call a ________ analysis? Ratio
Funds that a manager can access at anytime up to an amount agreed upon between the bank and the company are called a line of ________? Liability
The two divisions that make up most finance departments are _______? Accounting and Financial management
Demand deposits include ________ accounts? Both Checking and Savings
Your boss asks you to email a spreadsheet that shows the exchange of money between the company and everyone else it deals with over a period of time. When sending the email you most likely will attach the file named ________? Statement_of_asset_flows
Accounting is important for ___________? Organizations of all sizes and types
Factoring is the process of selling accounts ______ for cash? Receivable
Current assets – Current liabilities = _____ capital? Working
If a company has negative working capital, its current assets ______ is its current liabilities? Are less than
Short – term liabilities are also known as ________liabilities? Current
Your boss asks you to email a spreadsheet that shows how much money came into the company and how much money the company spent last month. When sending the email, you most likely will attach the file named _______? Income – Statement
Long – term financing generated by the owners of a company is called ______ financing? Equity
Laureen Cooley is preparing a spreadsheet that shows inventory, sales, purchase, manufacturing, and marketing costs for her organization. This document is called a ______ Budget? Operating
Mark Lewis manages a corporate department that reviews and evaluates the accuracy of financial reports. Mark works in ______? Auditing
A financial manager is responsible for ______? Raising capital for future growth and expansion
As a financial manager, you decide to borrow funds in order to meet payroll. Your company will pay back the funds within nine months. You are seeking ______ financing? Short – Term
The clothing and accessories at New Fashion Stores, Inc. are an example of ______assets? Current
Monitoring cash flows is important because it measures a company’s _________? Short – Term financial health and financial efficiency
When New Fashion Stores, Inc. built 100 new stores, it recorded to outflowing cash in the _______ activities section of its statement of cash flows? Investing
Kay aldan manages a department that prepares annual reports. Kay works in ______? Financial Accouting
When New Fashion Stores, Inc. paid a dividend to its shareholders, it recorded to outflowing cash in the ________ activities section of its statement of cash flows? Financing
CFO Jorge Sierra needs short – term financing for a large corporation. He decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days. Jorge is using ______ ? Commercial Paper
Iris Velez manages a department that calculates payments to be made to federal, state, and local governments. Iris works in ________ ? Tax Accounting
Joseph Coulter needs long – term financing for his company. He contacts funders group, which is willing to provide funding in exchange for an ownership stake, an active role in management of Joseph’s company, and an opportunity for a large return on its investment. Funders Group is offering _____ capital? Venture
The amounts that New Fashion Stores, Inc. owes to clothing manufacturers are an example of ________? Liabilities
Adam Zarand wants to help his company decide whether or not to shut down an unproductive plant. Which type of accounting will he most likely use? Managerial
Last year Huge TV Corp. had net income equaling $5 million. At the end of the year, the corporation had 4 million shares of stock outstanding. The company’s earnings per share were? $1.25
A common leverage ratio is for a company to have at least _____ times the amount of equity as it has debt? Tw0
T0tal liabilities at New Fashion Stores, Inc. are $5 million, and total owners equity is $4 million. The company’s debt to equity ratio is ? 1.25
A financial manager is sometimes referred to as a ? CFO
On an income statement: Revenue – Expenses = Net Income (or less)
New Fashion Stores, Inc. received 1,000 t-shirts on the first of the month. By the end of the month, the company had sold 743 shirts. The difference is ________ Inventory
Because’s current assets are less than its current liabilities, the company has positive working capital true or false? F
A university would consider its students tuition payments to be revenue true or false? T
Using leverage is always beneficial true or false> F
Assets at New Fashion Store, Inc. equal $10 million. Liabilities equal $8 million. Therfore, owners equity equals $2 million true or false? T
financial statements serve as a basis for management to develop expectations of where the company will be in future periods true or false? T
Assets are the amounts that a company owes to its creditors true or false? F
A common set of country – neutral accounting standards is known as International Financial Reporting Standards (IFRSs) True or false? T
Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate true or false? F
Double entry bookkeeping recognizes that for every transaction that affects an asset, an equal transaction must also affect either a liability or owners equity true or false? T
Leverage is the amount of debt used to finance a firm’s assets true or false? T
A commercial finance company is an alternative to a bank as a source of short- term financing true or false? T
Commercial banks are financial institutions that raise funds from businesses and individual in the form of checking and savings accounts and use those funds to make loans to businesses and individuals true or false? T
Government and not for profit accounting refers to the accounting required for organizations that are not focused on generating a profit, such as legislative bodies and charities true or false? T
Accounts receivables is an example of a fixed asset true or false? F
Factoring is the process of selling accounts receivable for cash instead of using them as collateral for a loan true or false? T
Financial management involves setting up and monitoring controls to make certain the plans and budgets are monitored sufficiently so that the business can reach its financial goals true or false? T
You work at a fast food restaurant your wages are an example of operating expenses true or false? T
The Sarbanes – Oxley Act established the public company accounting oversight board, which is responsible for overseeing financial audits of public companies. true or false? T
The longest period covered in financial accounting reports is three months true or false? F
The financing activities section of a statement of cash flows include cash used or provided by the core business of the company true or false? F
A highly efficient company and potential good investment must have a high earnings per share ratio true or false? F

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