14-16 Flashcards
What organization sets the principles and standards of financial accounting, and reporting in the private sector
Financial accounting standards board
Thomas wants to become a certified public accountant so he must be certified by the _____ in which he practices to provide accounting services
State
Certification provides a public accountant with which of these rights
Express officially unbiased opinion about the accuracy of a firms financial statements
What legislative acts made accounting firm, separate for consulting and auditing businesses
The Sarbanes-Oxely Act
Joseph Tiana, and my work on a team that does accounting that is fit for legal review together they analyze financial documents for fraudulent entries or financial misconduct Joseph Tiana and my are practicing what
Forensic Accounting
Alejandro is an internal auditor employed by Jamison and Crowe a large technology corporation to prepare and analyze its financial statements. Based on this information Alejandro is an.
Private accountant
CMA stands for
Certified management accountant
Natalie is a private accountant for a government agency and has some managerial responsibility. After rigorous examination she was certified by the Institute of management accountants. Natalie is most likely to be an.
Certified management accountant
Derek works at Sally’s auto body shop. Her main job responsibility is to record the routine, day-to-day business transaction of the firm based on this information Derek is a.
Bookkeeper
Dexter is an accountant who works at Tech Plex as part of his management responsibilities. Dexter uses tech Plexes accounting statements in planning and directing the organizations activities. This is called.
Managerial accounting
In the context of material, accounting, wages, material costs and taxes are examples of
Operating expenses
The accounting team at Gray apparel prepares a summary of the companies, financial information, products and growth plans for gray apparel owners, and potential investors. This document which is produced once a year is the.
Annual report
Potential investors study, the financial statements and a companies annual report to
Determine whether the returns from the firm, compare favorably with other similar companies
Labor unions use financial statements of a company to
Establish reasonable expectations for salary, and other benefit requests
____ is the system of recording and classifying business transactions in separate accounts, in order to maintain the balance of the accounting equation
Double entry bookkeeping
Becky and Carl work for a marketing firm the two accountants discuss discussed the organizations financial performance Carl ask Becky what’s the bottom line Becky reviews a financial report that shows the firms profitability over the last quarter of the document Becky reviews is called the
Income statement
The amount of money a firm spent to buy produce, The products sold during the period to the income statement applies, is known as the.
Cost of goods sold
Near her companies expenses she notices the $200,000 cost of a tractor. The company purchased has been spread out over two years which is the total number of accounting periods in which the tractor is expected to be used. This special type of expense is known as.
Depreciation
Money serves three important functions as a medium of exchange, _____ , and a store of value
Measure of value
In the context of characteristics of money, the principle of stability
Allows people to postpone purchases without fear that money will decline and value
The US $100 bill has a watermark so when you hold the note to the light you can see a faint image of Benjamin Franklin in the blank space on the right side of the bill. Why do many countries use specially water marked papers
To make money difficult to duplicate
Amanda opens a savings account that guarantees her a set interest rate over the next five years as long as the funds are not withdrawn before the end of the five year. If she wants to pull the money out early, she will face a substantial penalty Amanda’s account is an example of a.
Certificate of deposit, CD
What statement is true of credit cards
The institution that issues, the credit card guarantees payment of a credit charge to merchants
The credit card (card accountability, responsibility and disclosure) act of 2009 was passed to
Regulate the practices of credit card companies
The _____ is considered the guardian of the American financial system
Federal reserve board
Monetary policy refers to
The means by which the Fed controls the amount of money available in the economy
Since Houston United Bank is holding 10 million in deposits, it must keep 1 million in the vault due to current reserve requirements from the Fed. This means it can lend out the remaining 9 million to customers. What is the reserve requirement in this scenario
10%
The ____ rate is the rate of interest, the federal reserve board charges to loan money to any banking institution to meet reserve requirements
Discount
The recession That began in February 2020. It was caused by the.
COVID-19 pandemic
How do recessions and economic downturns impact people spending habits
People save rather than spend
The Fed can determine how large a down payment individuals and businesses must make on credit purchases of expensive items, such as automobiles and how much time they have to finish paying for the purchases what of the four basic tools the federal reserve board uses to fine-tune money growth. Does this exemplify
Credit controls
The _____ has the authority to approve or disprove mergers between banks in the formation of bank, holding companies
Federal reserve board
What are considered the largest and oldest of all financial institutions?
Commercial bank
Dev has a share account and a shared draft account at a bank bank owned and controlled by the corporation for which Dev works. He and the other bank members are allowed to vote for the bank directors. What type of financial institution is Dev using
A credit union
The federal depository insurance corporation was established in 1933 to
Help stop bank failures throughout the United States
If a member bank of the federal deposit insurance corporation fails, it’s depositors can recover all of their funds up to
$250,000
Razors edge electronics calls, an organization seeking protection against financial losses from risks, such as accident, fire and theft and exchange for a premium, the organization, razors edge, electronics called, is an
Insurance company
Managing short-term assets and liabilities is sometimes called
Working capital management
Rosa is the finance manager of a customer apparel company while handling the business is cash flow. She make sure that there is just enough cash on hand to pay normal daily expenses. Like utility bills and employee wages. This cash can be referred to as.
Transaction balances
To facilitate collection, some companies have customers send their payments to a _____ , which is simply an address for receiving payments
Lockbox
The accounting team and a construction company noticed that cash is coming in faster than is needed to pay the bills. The department decides it would be best to invest this extra cash for the next month until it is needed temporary investments of cash, such as this are known as.
Marketable securities
US treasury bills are
Short term debt obligations the US government sells to raise money
What is true of commercial certificates of deposit?
They may be traded prior to maturity
What is true of commercial paper?
Sales of commercial paper are restricted to only the largest and most financially stable companies
The purchasing manager for lips and lashes and make up distributor purchases 1000 lipsticks from a cosmetics manufacturer beauty labs because the two companies have a good relationship beauty labs extends net, 30 terms to lips and lashes. Me and the company will have 30 days to make full payment. This is an example of.
Trade credit
Squeeze inc a company that makes and sells condiments needs a loan so I can put more resources towards research and development. The company makes an arrangement with the bank to secure. The funds needed. The bank, agrees to lend funds to squeeze inc as needed with the present limit of $1 million in the scenario of the type of funding obtained by squeeze inc can be regarded as.
A line of credit
Sergio purchased a new vehicle with a secured loan from the bank. If Sergio fails to pay back the loan, the bank will claim the car in this scenario the car represents represents
Collateral
Adele takes out a $25,000 loan from the bank with 3% interest the 25,000 represents the
Principal
Submarine sandwich shop takes out a $100,000 loan from the bank that has to be paid back within five years. The bank charges submarine sandwich shop 5% of the principal for use of its money in this case. The charge of 5% represents.
The interest on the loan
The prime rate is the
Interest rate, that commercial banks charge their best customers for short term loans
The companies, heavy machinery, equipment, and furniture are examples of
Long-term fixed assets
The capital budget of a company is the
Amount of money accounted for investment in long-term assets
A toy manufacturer is assessing potential investment projects, and their estimated risk what investment projects would create the least amount of risk for the company
Repairing old machinery
Much long-term debt takes the form of ____ , which are debt instruments that larger company sell to raise long-term funds
Bonds
Unsecured bonds, which are not backed by collateral or termed
Debentures
Floating rate bonds are
Bonds with interest rates that change with current interest interest rates
And excess of par is the difference between a stocks, par value, and its
Offering price
