Using Financial Information and Accounting

short-term claims that are due within a year of the date of the balance.

• current liabilities

• current assets

• assets

• liabilities

The private organization that is responsible for establishing financial accounting standards in the United States

• GAAP

• FASB

• IASB

• IFRS

the amount obtained by subtracting all of a firm's expenses from its revenues, when the revenues are more than the expenses

• Loss
• Revenue
• Cost
• Net Income

Discount on Notes Payable is a liability account.

• True

• False

When a customer purchases a product and owes the company money, what is that called?​ (a)  

• Accounts Receivable
• Accounts Payable
• debt
• supplies

• Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities.​

• True

• False

What is the accounting equation?

• Assets = Liabilities - Owners' Equity

• Revenue = Assets + Owners' Equity

• Owners Equity = Liabilities + Assets

• Assets = Liabilities + Owners' Equity

a financial statement that provides a summary of the money flowing into and out of a firm during a certain period, typically one year.

• Income Statement

• Statement of Cash Flows

• Balance Sheet

The Current Ratio is ​ ​ (a)   /​ (b)  

• total current assets
• total current assets - inventory
• net profit
• net sales
• total current liabilites
• total owners' equity

Private Accountants who are certified by the National Association of Accountants and who have some managerial responsibility

• Audit

• Certified Management Accountants (CMA's)

• Certified Public Accountants(CPA's)

• Tax