Chapter 15- Business Financial Records

The general term that applies to a computer that becomes inadequate because a more efficient model comes on the market

Merchandise inventory is the value of goods purchased to sell to customers at a profit

Which of the following is NOT an agency that assigns credit ratings to businesses?

By subtracting total projected costs and expenses from projected sales, a business can estimate its profit.

Accountants complete many of the day-to-day data entry and records management activities in large and small businesses

The money a business owes and the payments it makes for credit purchases are recorded in

Which financial ratio shows whether a firm can meet its current debts comfortably

A historical comparative analysis allows a business to compare performance against peer organizations

A graphic designed to provide a quick-view of key financial performance indicators is called a(n)

The amount a retailer pays to a supplier for goods it then resells is called the

Someone who gives professional advice or offers professional services is called a(n)

Net worth, owner's equity, and stockholder's equity are all terms meaning

Movement of cash into and out of business is known as

An examination of a company's financial records by an expert in order to verify their accuracy is called an audit

Business expenses for advertising, supplies, and maintenance are examples of operating expenses

The amount owed to a business by its customers is considered

A manager is most likely to use financial reports to

The basic accounting equation is

To determine whether or not a company is a good loan risk lenders often review its

The primary reason businesses keep financial records

A point-of-sale terminal can be used to calculate when merchandise should be reordered

Systems for keeping accounting records can require no equipment or be highly computerized

An employer can determine the amount to withhold from a paycheck for tax purposes using a table from the IRS plus their

An income statement is a financial report that would primarily be used for internal control of cash

The use of budgets and a budgeting system guarantees the success of a business

Total deposits less the total checks written can tell a business how well it is doing

When a petty cash fund is used, it is NOT necessary to keep a written record of all money paid out of the fund.

The original cost of an asset less its accumulated depreciation is the

The difference between current assets and current liabilities is

An operating budget includes projected

Cash comes into a business from two primary sources: cash receipts and checks

Except for equipment, fixed assets tend to lose their value over time

Many companies no longer issue actual paychecks to employees

Financial statements provide detailed information on such items as insurance and real property

Which part of an income statement shows all the costs incurred in operating the business?

A company can be highly profitable yet not have enough cash on hand at the right times to pay its bill.

Businesses that use budgets for their financial operations are usually more successful than those that don't use budgets

Accounts receivable are current assets

A business that is planning to introduce a new product will need a

An accounts receivable record shows money owed and payments made