Accounting - Chapter 7 - Financial Statements

Front

The area of accounting that focuses on reporting information to external users

Back

Financial accounting

Front

The area of accounting that focuses on reporting information to internal users

Back

Managerial accounting

Front

Which accounting concept says financial statements contain all information necessary to understand a business's financial condition?

Back

Full disclosure

Front

Which accounting concept says that a business will remain in operation indefinitely?

Back

Going concern

Front

A comparison between two components of financial information:

Back

Financial ratio

Front

Reporting an amount on a financial statement as a percentage of another item on the same financial statement is called:

Back

Vertical analysis

Front

__________ is a common financial ratio used to determine how much profit is being produced per dollar of sales.

Back

Return on sales (ROS)

Front

How do you show a negative amount in accounting?

Back

Put the amount in parentheses.

Front

A business has total revenue of $80,000 and total expenses of $95,000. Do they have a net income or net loss?

Back

Net loss

Front

A business has $40,000 in revenue and $20,000 in expenses. Do they have a net income or a net loss?

Back

Net income