SDC- Challenge Exam Review Ch. 8

A system for recognizing, organizing, analyzing, and reporting information about the financial transactions that affect an organization is called ______________________.

• Finance

• Accounting

• Budgeting

• Financial accounting

The branch of accounting that prepares financial statements for use by owners, creditors, suppliers, an other external stakeholders is called _________________.

• Financial accounting

• Managerial accounting

• Costing

• Budgeting

The set of accounting standards that are used in the preparation of financial statements are called ________________________.

• ISO 9000

• Generally Accepted Accounting Principles (GAAP)

• Financial Accounting Standards Board Rules

• None of the above

Through GAAP, the Financial Accounting Standards Board aims to ensure that financial statements are which of the following? (Check all that apply)

• Relevant

• Reliable

• Consistent

• Comparable

• Free

A financial statement that reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities and owner's equity is called the ___________________.

• Balance sheet

• Income statement

• Master budget

• Statement of cash flows

What is the accounting equation?

• Assets= Liabilities + Owner's Equity

• Owner's equity= Assets + Liabilites

• Assets= Liabilities - Owner's Equity

• Assets= Owner's Equity- Liabilities

_______________________are anything of value that the firm owns. On a balance sheet there are three categories current _______________ , intagible ______________, and Property, plant, and equipment.

• Liabilities

• Assets

• Owner's Equity

• None of the above

Claims that outsiders have against a firm's assets are called _____________________.

• Assets

• Liabilities

• Owner's equity

• Revenue

The claims a firm's owners have against their company's assets are called ______________________.

• Assets

• Liabilities

• Owner's equity

• Revenue

The financial statement that reports the revenue, expenses, and net income that resulted from a firm's operations over an accounting period is called a ____________________.

• Balance sheet

• Income statement

• Master budget

• Operating budget