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

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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
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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?
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