final review - A system that collects analyzes and...

A system that collects, analyzes, and communicated financial info is known as
accounting
Lilly manages a store where she is responsible for daily asales. She is responsible for
bookkeeping
A manager who oversees all of the business accounting activities is known as a
controller
Income statemnts and balance sheets are a part of this field of accounting- financial
accounting
Accounting info that is designed to be shared with internal decision makers is known as
managerial accounting
A controller examines her companys financial reports for accuracy. This examination is
known as an audit
Some accountants are called upon to examine a business for a court of law. These
accountants are forensic accountants
A Sarbanes oxley act is designed to all of these
A basic tool of accounting is known as the accounting equation. Which of thses? Assets=
liabilities + owners equity
Abc inc owns three cash registers. The cash registers are an example of an asset
Abc inc received a bill from one of its suppliers this morning. The money owed is a
liability
This would remain if a business were sold and all its debts were paid- owners equity
An asset that can be or will be converted to cash within a year is current asset
Abc inc owns a warehouse and the land that surrounds it. The warehouse and the land are
fixed assets
Nike has a patent on nike air. The value of this patent is listed on a balance sheet as an
intangible asset
Many assets lose value over the course of time. Accountants use depreciation to
distribute the cost of an asset over time
Revenues – expenses = profit
Funds that flow into a business from the sale of goods or services are known as revenues
This statement provides the most detail about how a company earns and spends cash.
Statement of cash flows

This is a detailed statement of estimated receipts and expenditures for a future period of
time. Budget
a common method for measuring a firms ability to pay its immediate debts is known as
current ratio (current assets devided by current liabilities)
CHAPTER 15
which of these statements bout money is true?