
BUS 508 BUS508 CHAPTER 15 QUIZ Answers
BUS 508 CHAPTER 15 QUIZ
- The ________ states that assets must equal liabilities plus owners’ equity.
- Of the four financial statements, only the balance sheet is considered to be a permanent statement; its amounts are carried over from year to year.
- ________ is a record of the change in owners’ equity from the end of one fiscal period to the end of the next.
- The final figure on the income statement is the so-called ________.
- The ________ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials in order to win or continue business.
- ________ are principles that encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time.
- The ________ carefully monitors changing business conditions, enacting new rules and modifying existing rules when necessary.
- A firm’s ________ shows its financial position on a particular date.
- Ratios do not assist managers by interpreting actual performance and making comparisons to what should have happened.
- ________ is the process of measuring, interpreting, and communicating financial information to enable people inside and outside the firm to make informed decisions.
- A ________ is a planning and controlling tool that reflects the firm’s expected sales revenues, operating expenses, and cash receipts and outlays.
- Accounting professionals fulfill important responsibilities beyond preparing financial statements.
- Liabilities and owners’ equity indicate the sources of the firm’s assets and are listed in the order in which they are due.
- The ________ feature describes recent developments in the accounting profession in China and Hong Kong.
- ________ is the process by which accounting transactions are recorded.
- A firm’s ability to meet its short-term obligations when they must be paid is measured by ________.
- ________ is the owner’s initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.
- A fiscal year has to coincide with the calendar year, and companies set different fiscal years.
- Accounting software programs are not used widely in both large and small businesses today.
- ________ recognizes revenues and costs when they occur, not when actual cash changes hands.