records transactions at the time the money changes hands

how do you calculate owner's equity?

Total Assets - Owner's Investment

The role of finance in business often involves:

monitoring expenses, obtaining funds

The accrual accounting method is:

when trans. are rec. when they occur even no $ is exchanged

An accounting system is:

methods & procedures used to handle the bus. financial info.

Formula for calculating Total Liabilities and Net Worth

current liabilities + Long term liabilities + owner's equity

Cost accounting is used to:

reduce or eliminate costs in a business.

the process of keeping and interpreting financial records

How do you calculate owner's investment?

Current liabilities + Long Term Liabilities

How do you calculate Cost of Goods Sold (COGS)

Beginning Inventory + Purchases - Ending Inventory

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Unit 6 Review

26 termsStudBud Administration46 plays

A review of concepts learned in unit 6

Flashcards26 cardsFPractice quizPHost liveL

Questions 26

Answers

1
Net income (from operations) is calculated by:
Gross Profit/Gross Sales
Gross Profit/Expenses
Gross profit + expenses
Gross profit - total expenses
2
mgmt. of a firms current assets and liabilities; involves accts pay. and rec., inventory & cash
Cost Accounting
Working Capital Management
Cash conversion Cycle
Finance Management
3
the process of obtaining funds & using them to achieve the goals of the business
Capital Investment
Accounting
Finance
Cash accounting
4
ratio for the # of days b/t a bus pmt for materials and rec. payment for goods made with them
Return on Capital
Liability Ratio
Working Capital Management
Cash conversion Cycle
5
Cash accounting:
obtains funds for businesses to reach their goals
records transactions at the time the money changes hands
records trans. when they occur even if no $ is exchanged
reduces or eliminates costs in a business
6
how do you calculate owner's equity?
Total Assets - Long Term Liabilities
Total Assets - Owner's Investment
Total Assets + Owner's Investment
Total Assets - Current Liabilities
7
The role of finance in business often involves:
monitoring expenses
paying employees
buying supplies
obtaining funds
8
When a business invests funds to expand, the are involved in the process of:
selling
capitalism
finance
depreciation
9
Income Statement calculation for Gross profit on Sales
Gross Sales - Returns
Net Sales-COGS
Net Sales - Returns
Net Sales + COGS
10
The accrual accounting method is:
when trans. are rec. when they occur even no $ is exchanged
when transactions are recorded as money changes hands
used to reduce or eliminate costs in a business
used to report financial data to internal users
11
An accounting system is:
the process of obtaining funds to reach business goals
the process of keeping & interpreting financial records
methods & procedures used to handle the bus. financial info.
a measure of how well a business generates cash flow
12
Formula for calculating Total Liabilities and Net Worth
current liabilities + Long term liabilities + owner's equity
total assets - owner's investment
total assets - total liabilities
current liabilities - long term liabilities - owner's equity
13
measure of how well a business generates cash flow in relation to the capital already invested
Return on Capital
Capital Management
Working Capital
Cash Conversion Cycle
14
Businesses could not determine if they were meeting their financial goals without accurate:
production plans
distribution channels
marketing plans
accounting systems
15
Accounts payable, salaries payable and income tax payable are examples of:
current assets
long term liabilites
long term assets
current liabilites
16
Cash, accts receivable, inventory and supplies are examples of:
long term assets (fixed)
long term liabilities
current assets
current liabilities
17
Cost accounting is used to:
obtain funds to help the business reach it's goals
reduce or eliminate costs in a business.
monitor the procedures used in handling the bus. fin. info.
keep and interpret financial records
18
Businesses use the information they collect during the accounting process to prepare accurate:
purchase orders
inventory forms
promissory notes
balance sheets
19
Accounting is:
the process of keeping and interpreting financial records
the process of obtaining funds to achieve the bus. goals
a measure of how well a business generates cash
procedures used in handling a bus. financial info. records
20
What is one of the main reasons why businesses need to keep accurate accounting records?
to eliminate risk
to control expenses
to regulate taxes
To follow procedures
21
How do you calculate owner's investment?
Assets + Liabilities
Assets - liabilities
Current liabilities + Long Term Liabilities
Current Liabilities - Long term liabilities
22
Decisions that determine what projects a bus will invest in & how it's financed
Equity Decisions
Capital Investment Decisions
Profit or Loss Decisions
Accounting decisions
23
Assets a company already owns and can use to finance a new venture are called:
accounts receivable
equity
accounts payable
dividends
24
How do you calculate Cost of Goods Sold (COGS)
Beginning Inventory - Purchases + Ending Inventory
Beginning Inventory + Ending Inventory
Beginning Inventory + Purchases - Ending Inventory
Beginning inventory - Ending Inventory
25
form of accounting that prepares & reports financial data to internal users
managerial accounting
cost accounting
accrual accounting
cash accounting
26
Owner's equity is also known as:
Capital
Assets
Owner's investment
Net Worth

Unit 6 Review Flashcards | StudBud