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Accounting for Managers > Chapter 1 - Notes > Flashcards

Chapter 1 - Notes Flashcards

1
Q

Questions financial accounting asks (4)

A
  1. Should I invest in the business?
  2. Is the business profitable?
  3. Should we lend money to the business?
  4. Can the business pay us back?
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2
Q

Questions managerial accounting asks (3)

A
  1. How much money should the business budget for production?
  2. Should the business expand to a new location?
  3. How much do actual costs compare to budgeted costs?
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3
Q

Accounting questions asked by individuals (2)

A
  1. How much cash do you have?

2. How much do you need to save each month to retire at a certain age or pay for a college education?

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4
Q

Business owners use accounting information to: (3)

A

o Set goals
o Measure progress towards goals
o Make adjustments when needed

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5
Q

Financial statements are helpful when, for example, a business needs to know ________________

A

If it has enough money for new computers

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6
Q

Outside investors who have some ownership interest often ____________ to get a business going

A

provide the money

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7
Q

How might you decide if a business is a good investment?

A

You might try to predict the amount of income from the investment

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8
Q

After investment, a ________ show how the investment is doing

A

financial statement

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9
Q

Before extending credit to a business, a creditor evaluates the company’s ___(a)___ by evaluating ___(b)___

A

a. ability to pay

b. financial statements

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10
Q

Income tax is calculated using _________

A

accounting information

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11
Q

Good accounting records can help individuals and businesses take advantage of lawful _____________

A

deductions

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12
Q

Without good records, the IRS can disallow ___(a)___, resulting in a ___(b)___ plus ___(c)___

A

a. tax deductions
b. higher tax bill
c. interest and penalties

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13
Q

Requirements to be a CPA

A
  1. Requirements vary state to state

2. One must meet the education and/or experience requirements and pass a qualifying exam

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14
Q

Controller

A

Complie financial statements, interact with auditors, and oversee regulatory reporting

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15
Q

Financial Analysts

A

Review financial data and help to explain the story behind the numbers

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16
Q

Business Systems Analysts

A

Use accounting knowledge to create computer systems

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17
Q

Tax Accountants

A

Help companies navigate tax laws

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18
Q

Auditors

A

Perform reviews of companies to ensure compliance to rules and regulations

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19
Q

Cost Accountants

A

Typically work in a manufacturing business. Help analyze accounting data

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20
Q

Paraprofessional / Bookkeeper

A

Record financial transactions and help prepare financial records

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21
Q

Public accounting involves working for ______

A

a public accounting firm

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22
Q

Private accounting involves working for

A

a single company (ex Amazon)

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23
Q

Financial Accounting Standards Board (FASB) works with the ___(a)___ and ___(b)___ groups like the ___(c)___ and ___(d)___ groups like the ___(e)___, ___(f)___, and ___(g)____

A

a. SEC
b. congressionally created
c. Public Company Accounting Oversight Board (PCAOB)
d. private
e. American Institute of CPAs (AICPA)
f. Institute of Management Accountants (IMA)
g. Internal Accounting Standards Board (IASB)

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24
Q

Securities and Exchange Commission (SEC) is a US Governmental agency that oversees the ___(a)___. It also oversees those organizations that ___(b)___ like ___(c)___. It requires US businesses follow ___(d)___

A

a. US financial markets
b. sets standards
c. the FASB
d. US GAAP

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25
Q

GAAP rests on ___(a)___ that identifies the ___(b)___, ___(c)___, ___(d)___, and ___(e)___ of financial statements and creates ___(f)___

A

a. conceptual framework
b. objectives
c. characteristics
d. elements
e. implementation
f. acceptable accounting processes

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26
Q

The primary objective of financial reporting is to __________________

A

provide information useful for making investment and lending decisions

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27
Q

To be useful, information must have ___________

A

faithful representation

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28
Q

Relevant information allows users of the information to ______________

A

make a decision

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29
Q

Information that is faithfully representative is ___(a)___, ___(b)___, and ___(c)___

A

a. complete
b. neutra
c. free from error

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30
Q

We draw ___(a)___ around each entity to keep ___(b)___

A

a. boundaries

b. its affairs distinct from those of other entities

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31
Q

Entity refers to one ___(a)___, separate from its ___(b)___

A

a. business

b. owners

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32
Q

of Owners - Sole Proprietorship

A

1

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33
Q

of Owners - Partnership

A

2 or more (partners)

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34
Q

of Owners - Corporation

A

1 or more (stockholders)

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35
Q

of Owners - LLC

A

1 or more (members or partners)

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36
Q

Term - Sole Proprietorship

A

Terminates at owner’s choice or death

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37
Q

Term - Partnership

A

Terminate at a partner’s choice or death

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38
Q

Term - Corporation

A

Indefinite

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39
Q

Term - LLC

A

Indefinite

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40
Q

Liability of Owner(s) for the Debts of the Business - Sole Proprietorship

A

Owner is personally liable

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41
Q

Liability of Owner(s) for the Debts of the Business - Partnership

A

Partners are personally liable

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42
Q

Liability of Owner(s) for the Debts of the Business - Corporation

A

Stockholders are not personally liable

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43
Q

Liability of Owner(s) for the Debts of the Business - LLC

A

Members are not personally liable

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44
Q

Taxation - Sole Proprietorship

A

Not separate taxable entities. Owner pays tax on the business’ earnings

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45
Q

Taxation - Partnership

A

Partnership is not taxed, partners pay tax on their own part of the earnings

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46
Q

Taxation - Corporation

A

Separate taxable entity. Corporation pays taxes

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47
Q

Taxation - LLC

A

LLC is not taxed, instead members pay tax on their share of earnings

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48
Q

Type of Business - Sole Proprietorship

A

Small business

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49
Q

Type of Business - Partnership

A

Professional organizations (physicians, attorneys, and accountants)

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50
Q

Type of Business - LLC

A

Professional organizations (physicians, attorneys, and accountants) - alternative to the partnership

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51
Q

Type of Business - Corporation

A

From small business to large multinational businesses

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52
Q

A corporation is an entity that exists separate from its ___(a)___ who are called ___(b)___ or ___(c)___

A

a. owners
b. stockholders
c. shareholders

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53
Q

The corporation has many of the rights that a ______ has

A

person

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54
Q

Examples of a rights a corporation has like a person (4)

A
  1. buy, sell, and own property
  2. enter into contracts
  3. sue
  4. be sued
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55
Q

Items that the business owns (its ___(a)___) and those items that the business has to pay later (its ___(b)___) belong to the ___(c)___ and not to the ___(d)___

A

a. assets
b. liabilities
c. corporation
d. individual stockholders

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56
Q

Stockholder

A

A person who owns stock in a corporation

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57
Q

Ownership interest of a corporation is divided into ___(a)___ or ___(b)___

A

a. shares

b. stock

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58
Q

A person becomes a stockholder by __________

A

purchasing stock of the corporation

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59
Q

The corporate ___(a)___ specifies how much stock the corporation is authorized to issue (sell) to the ___(b)___. Due to this it is usually easier for corporations to ___(c)___

A

a. charter
b. public
c. raise capital

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60
Q

Continuous Life and Transferability of Ownership

A

Stockholders may transfer stock as they wish by selling or trading the stock to another person, giving the stock away, bequesting it in a will, or disposing of the stock in any other way

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61
Q

Because corporations have ___(a)___ lives regardless of changes in the ___(b)___, the ___(c)___ has no effect on the ___(d)___ of the corporation. A corporation’s life is not dependent on a ___(e)___

A

a. continuous
b. ownership of their stock
c. transfer of stock
d. continuity
e. specific individual’s ownership

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62
Q

No Mutual Agency

A

means that the stockholder of a corporation cannot commit the corporation to a contract unless that stockholder is acting in a different role, such as an officer in the business

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63
Q

Mutual agency of the owners is not present in a ___(a)___ as it is in a ___(b)___

A

a. corporation

b. partnership

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64
Q

Limited Liability of Stockholder

A

a stockholder has limited liability for the corporation’s debts

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65
Q

The most that stockholders can lose is ____________

A

the amount they originally paid for the stock

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66
Q

The combination of limited liability and no mutual agency means that a person can ___(a)___ with only the fear of ___(b)___ if the business fails. This attractive feature enables a corporation to ___(c)___ than ___(d)___ and ___(e)___

A

a. invest unlimited amounts in a corporation
b. losing whatever amount the individual has invested
c. raise more money
d. proprietorships
e. partnerships

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67
Q

Separation of Ownership and Management

A

Stockholders own the business, but a board of directors – elected by the stockholders – appoints corporate officers to manage the business. Thus, stockholders do not have to disrupt their personal affairs to manage the business

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68
Q

The separation between stockholders and management may create problems: (2)

A
  1. Corporate officers may decide to run the business for their own benefit rather than for the benefit of the company.
  2. Stockholders may find it difficult to lodge an effective protest against management because of the difference between them and the top managers
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69
Q

Corporate Taxation

A

Corporations are separate taxable entities. They pay a variety of taxes not paid by sole proprietorships or partnerships

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70
Q

Depending on the state in which the corporation incorporated and the states in which the corporation operates, the taxes could include one or both of the following

A
  1. Federal and State Income Taxes

2. Annual Franchise Tax Levied by the State

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71
Q

Federal and State Income Taxes (corporation)

A

Corporate taxes are subject to double taxation. First, corporations pay their own income tax on corporate income. Second, the stockholders pay personal income tax on the dividends that they receive from corporations.

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72
Q

Federal and State Income Taxes for a corporation are different from sole proprietorships and partnerships, which ___(a)___. Instead, the tax falls solely on ___(b)___

A

a. pay no business income tax

b. individual owners

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73
Q

Annual Franchise Tax Levied by the State (corporation)

A

the franchise tax is paid to keep the corporation charter in force and enables the corporation to continue in business

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74
Q

Corporations are subjected to more ___(a)___ than other forms of business, which is a ___(b)___ for corporations and can be ___(c)___

A

a. governmental regulation
b. disadvantage
c. expensive

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75
Q

____(a)___ begin the creation of the corporation by ____(b)____

A

a. Incorporators

b. obtaining a charter from the state

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76
Q

The charter includes the authorization for the corporation to ___(a)___, which represent the ___(b)___

A

a. issue a certain number of stocks

b. ownership in the corporation

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77
Q

Regarding the charter, the incorporators ___(a)___, ___(b)___, and ___(c)___

A

a. pay fees
b. sign the charter
c. file the required documents with the state

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78
Q

Bylaws

A

rule book that guides the corporation

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79
Q

___(a)___ agree to a set of bylaws, which act as the ___(b)___ for ___(c)___ the corporation

A

a. incorporators
b. constitution
c. governing

80
Q

Once _______, the corporation comes into existence

A

the first share of stock is issued

81
Q

The ultimate control of the corporation rests with ___(a)___, who normally receive ___(b)___ for each ___(c)___

A

a. the stockholders
b. one vote
c. share of stock they own

82
Q

The stockholders elect ___(a)___, which ___(b)___ and ___(c)___

A

a. the members of the board of directors
b. sets policy for the corporation
c. appoints the officers

83
Q

The board elects a ______, who usually is the most powerful person in the corporation

A

chairperson

84
Q

The board also designates the ______, who as chief executive officer manages day-to-day operations

A

president

85
Q

Most corporations also have ______ in charge of sales, operations, accounting and finance, and other key areas

A

vice presidents

86
Q

A cost principle is also called a __________

A

historical cost

87
Q

The cost principle means we record a transaction at the ___(a)___ (the ___(b)___)

A

a. amount shown on the receipt

b. actual amount paid

88
Q

With the cost principle, even though the purchaser may believe the price is a ___(a)___, the item is recorded at ___(b)___ and not at the ___(c)___ cost

A

a. bargain
b. the price actually paid
c. “expected”

89
Q

Cost principle holds that accounting records should continue reporting the ___(a)___ of an asset over ___(b)___ because cost is a ___(c)___

A

a. historical cost
b. its useful life
c. reliable measure

90
Q

Going Concern Assumption is another reason of measuring ______

A

assets at historical cost

91
Q

Going Concern Assumption assumes businesses will ___(a)___ long enough to ___(b)___ for their ___(c)___

A

a. remain in operation
b. use the existing resources
c. intended purposes

92
Q

with Monetary Unit Assumption, accountants assume that the dollar’s ___(a)___ is ___(b)___

A

a. purchasing power

b. stable

93
Q

Inflation

A

a rise in the price level as the value of a dollar changes over time

94
Q

Companies who are incorporated in or do significant business is in another country might be required to publish financial statements using ______

A

International Financial Reporting Standards (IFRS)

95
Q

International Financial Reporting Standards (IFRS) are generally ___(a)___ and based more on ___(b)___ than US GAAP

A

a. less specific

b. principle

96
Q

Financial statements published by IFRS are published by the ______

A

IASB

97
Q

International Financial Reporting Standards (IFRS) leaves more room for _______

A

professional judgment

98
Q

SEC does not endorse ___(a)___ and is currently considering whether ___(b)___ is achievable

A

a. IFRS

b. a single set of global accounting standards

99
Q

What are the opposing viewpoints in ethical considerations for accounting and business (2)

A
  1. Investors and creditors need relevant and faithfully representative information about a company that they are investing in or lending money to
  2. Companies want to be profitable and financially strong to attract investors and attempt to present their financial statements in a manner that portrays the business in the best possible way
100
Q

Opposing viewpoints in ethical considerations for accounting and business can cause ______

A

conflicts of interest

101
Q

Audit

A

an examination of a company’s financial statements and records

102
Q

Sarbanes-Oxley Act (SOX) was created in response to ___(a)___ and is intended to ___(b)___

A

a. the Enron and WorldCom scandals

b. curb financial scandals

103
Q

The Sarbanes-Oxley Act (SOX) makes it a criminal offense to ______

A

falsify financial statements

104
Q

The Sarbanes-Oxley Act (SOX) created a new watchdog agency, ___(a)___, to monitor the ___(b)___ who ___(c)___

A

a. the Public Company Accounting Oversight Board (PCAOB)
b. work of independent accountants
c. audit public companies

105
Q

Basic Accounting Equation

A

Assets = Liabilities + Equities

106
Q

Assets

A

economic resources that are expected to benefit the business in the future. Something the business owns or has control

107
Q

Assets are something of value that the business owns or has control of, for example ___(a)___, ___(b)___, ___(c)___, and ___(d)___

A

a. cash
b. merchandise inventory
c. furniture
d. land

108
Q

Claims to assets come from two sources: ___(a)___ and ___(b)___

A

a. liabilities

b. equities

109
Q

Liabilities

A

debts that are owed to creditors

110
Q

Liabilities are something the business ___(a)___ and represent the creditors’ ___(b)___

A

a. owes

b. claims on the business’s assets

111
Q

A creditor who has loaned money to a business has a ___(a)___ until ___(b)___

A

a. claim to some of the business’s assets

b. the business pays the debt

112
Q

Many liabilities have the word ______ in their titles,

A

payable

113
Q

Equity

A

The owners’ claims to the assets of the business

114
Q

Equity is also called ______

A

stockholders equity

115
Q

Equity represents the amount of ___(a)___ that are left over after the company has ___(b)___; it is the company’s ___(c)___

A

a. assets
b. paid its liabilities
c. net worth

116
Q

Equity increases with ___(a)___ and ___(b)___

A

a. owner contributions

b. revenues

117
Q

Contributed Capital

A

owner contributions to a corporation

118
Q

A stockholder can contribute ___(a)___ or ___(b)___ (such as ___(c)___) to the business and receive ___(d)___

A

a. cash
b. other assets
c. equipment
d. capital

119
Q

Revenues

A

amounts earned from delivering goods or services to customers

120
Q

Revenues ______ equity

A

increase

121
Q

Equity decreases with ___(a)___ and ___(b)___

A

a. expenses

b. distributions to owners

122
Q

Expenses

A

the costs of selling goods or services

123
Q

Expenses are the opposite of ___(a)___ and, therefore, ___(b)___ equity

A

a. revenues

b. decrease

124
Q

Dividend

A

a distribution of a corporation’s earnings to stockholders

125
Q

Dividends can be paid in the form of ___(a)___, ___(b)___, or ___(c)___

A

a. cash
b. stock
c. other property

126
Q

Dividends are not ______

A

expenses

127
Q

A corporation may or may not make ______ payments to the stockholders

A

dividend

128
Q

Dividends are the opposite of ___(a)___ and therefore ___(b)___ equity

A

a. owner contributions

b. decrease

129
Q

Equity consists of two main components:
1.
2.

A
  1. Contributed capital

2. Retained earnings

130
Q

Contributed Capital

A

the amount contributed to the corporation by its owners (the stockholders. Also called paid-in capital

131
Q

Contributed capital is also called ______

A

paid-in capital

132
Q

The basic element of contributed capital is ___(a)___, which the corporation issues to the ___(b)___ as evidence of their ___(c)___

A

a. stock
b. stockholders
c. ownership

133
Q

Common Stock

A

represents the basic ownership of a corporation

134
Q

Retained Earnings

A

equity earned by profitable operations of a corporation that is not distributed to stockholders

135
Q

Three types of events that affect retained earnings:
1.
2.
3.

A
  1. Dividends
  2. Revenues
  3. Expenses
136
Q

Dividends represent ___(a)___ in retained earnings through the ___(b)___ of cash, stock, or other property to ___(c)___

A

a. decreases
b. distribution
c. stockholders

137
Q

Revenues represent ___(a)___ in retained earnings from ___(b)___ to customers. They are ___(c)___.

A

a. increases
b. delivered goods or services
c. earnings

138
Q

Expenses represent ___(a)___ in retained earnings that result from ___(b)___

A

a. decreases

b. operations

139
Q

Net Income

A

The result of operations that occurs when total revenues are greater than total expenses

140
Q

Businesses strive for ______

A

net income

141
Q

When ___(a)___ are greater than ___(b)___, the result of operations is a ___(c)___, or net income

A

a. revenues
b. expenses
c. profit

142
Q

Net Loss

A

the result of operations that occurs when total expenses are greater than total revenues

143
Q

When ___(a)___ are greater than ___(b)___, the result is a net loss

A

a. expenses

b. revenues

144
Q

Transaction

A

An event that effects the financial position of the business and can be measured with faithful representation

145
Q

Accounting is based on actual ______

A

transactions

146
Q

Transactions will affect the company’s ___(a)___, ___(b)___, and/or it’s ___(c)___

A

a. assets
b. liabilities
c. net worth (equity)

147
Q

Many events affect a company, including economic booms and recessions. Accountants ___(a)___ record the effects of those events. An accountant records only events that ___(b)___, such as ___(c)___, ___(d)___, and ___(e)___.

A

a. do not
b. have dollar amounts that can be measured reliably
c. purchase of a building
d. sale of merchandise
e. the payment of rent

148
Q

Steps in analyzing a transaction
1.
2.
3.

A
  1. Identify the accounts and the account type
  2. Decide if each account increases or decreases
  3. Determine if the accounting equation is in balance
149
Q

Each transaction must affect at least ___(a)___ accounts but could affect ___(b)___

A

a. 2

b. more than 2

150
Q

Items such as office supplies are an ___(a)___, not an ___(b)___ because ___(c)___. Office supplies aren’t ___(d)___, but will be ___(e)___

A

a. asset
b. expense
c. the supplies are something of value that the company had
d. used up immediately
e. in the future

151
Q

Purchasing office supplies “on account” is ___(a)___, which is a ___(b)___ that will be paid in the future

A

a. an accounts payable

b. short-term liability

152
Q

A payable is always a ______

A

liability

153
Q

When deciding if each account in a transaction increases or decreases, remember to look at this from the ___(a)___ perspective, not from the ___(b)___ or ____(c)___ perspective

A

a. business’s
b. stockholders’
c. customers’

154
Q

Cash Increases

A

The business has more cash than it had before

155
Q

Common Stock Increases

A

the business received a contribution and issued stock

156
Q

For each transaction, the amount on the ___(a)___ must equal the ___(b)___

A

a. left side of the equation

b. amount on the right side

157
Q

Accounts Receivable

A

The right to receive cash in the future from customers for goods sold or for services performed

158
Q

A promise to pay is a/an ___(a)___, a/an ___(b)___, because ___(c)___

A

a. asset
b. Accounts Receivable
c. the business expects to collect the cash in the future

159
Q

The term on an account can be used to represent either ___(a)___ or ___(b)___. If the business will be receiving cash in the future, the company will record a/an ___(c)___. If the business will be paying cash in the future, the company will record a/an ___(d)___

A

a. Accounts Receivable
b. Accounts Payable
c. Accounts Receivable
d. Accounts Payable

160
Q

Financial Statements

A

business documents that are used to communicate information needed to make business decisions

161
Q 
Types of Financial Statements 
1.
2.
3.
4.
A
  1. Income Statement
  2. Statement of Retained Earnings
  3. Balance Sheet
  4. Statement of Cash Flows
162
Q

Income Statement

A

Reports the net income or net loss of the business for a specific period

163
Q

An income statement provides information about ___(a)___ for ___(b)___

A

a. profitability

b. a particular period for the company

164
Q

Net income means ___(a)___ are greater than ___(b)___

A

a. total revenues

b. total expenses

165
Q

Net loss means ___(a)___ are greater than ___(b)___

A

a. total expenses

b. total revenues

166
Q

The only two types of accounts that are reported on the income statement are ___(a)___ and ___(b)___

A

a. revenues

b. expenses

167
Q

Income statements are prepared by:

A

Revenues – Expenses = Net Income or Net Loss

168
Q

Statement of Retained Earnings

A

Reports how the company’s retained earning balance changed from the beginning to the end to the period

169
Q

A ______ informs users about how much of the earnings were kept and reinvested in the company

A

statement of retained earnings

170
Q

Net income used on the ___(a)___ is the net income that was calculated on the ___(b)___

A

a. statement of retained earnings

b. income statement

171
Q

The main reason why the income statement is prepared before the statement of retained earnings is because ______ from the income statement is used on the statement of retained earnings

A

the net income

172
Q

The net income or net loss must first be calculated on the ___(a)___ then carried to the ___(b)___

A

a. income statement

b. statement of retained earnings

173
Q

The Statement of Retained Earnings is prepared by: ______

A

Retained earnings, Beginning [+ Net Income or – Net Loss for the period] – Dividends for the period = Retained Earnings, Ending

174
Q

Balance Sheet

A

Reports on the assets, liabilities, and stockholders’ equity of the business as of a specific date

175
Q

The balance sheet provides valuable information to ___(a)___ users about ___(b)___ as well as ___(c)___

A

a. financial statement
b. economic resources the company has (assets)
c. debts the company owes (liabilities)

176
Q

The balance sheet is a ___(a)___ of the entity. An investor or creditor can quickly assess the ___(b)___ of a business by viewing the balance sheet

A

a. snapshot

b. overall health

177
Q

The ______ allows decision makers to determine their opinion about the financial position of the company

A

balance sheet

178
Q

The balance sheet is prepared by: ______

A

Assets = Liabilities + Stockholders’ Equity

179
Q

Statement of Cash Flows

A

Reports on a business’s cash receipts and cash payments for a period of time

180
Q

The statement of cash flows reports on ___(a)___ and ___(b)___ during a ___(c)___

A

a. the cash coming in (positive amounts)
b. the cash going out (negative amounts)
period

181
Q

The statement of cash flows only reports transactions that involve ___(a)___ because it reports ___(b)___ in ___(c)___ during the period and the ___(d)___

A

a. cash
b. the net income increase or decrease
c. cash
d. ending cash balance

182
Q

If a transaction does not involve cash, such as the purchase of supplies on an account, it will not be reported on the ______

A

statement of cash flows

183
Q

The statement of cash flows is divided into three distinct sections:
1.
2.
3.

A

a. Operating
2. Investing
3. Financing

184
Q

Operating section of statement of cash flows

A

involve cash receipts for services and cash payments for expenses

185
Q

Investing section of statement of cashflows

A

include the purchase and sale of land and equipment for cash

185
Q

Investing section of statement of cashflows

A

include the purchase and sale of land and equipment for cash

186
Q

Financing section of statement of cash flows

A

include cash contributions by stockholders and cash dividends paid to the stockholders

187
Q

A statement of cash flows is prepared by:
1.
2.
3.

A
  1. Cash flows from operating activities
  2. Cash flows from investing activities
  3. Cash flows from financing activities
188
Q

When you are preparing the financial statements, start by identifying ___(a)___. Each ___(b)___ will only go on ___(c)___, except for ___(d)___ and ___(e)___.

A

a. which account goes on which statement
b. account
c. one statement
d. Retained Earnings
e. cash

189
Q

___(a)___, such as ___(b)___, are only reported on the balance sheet

A

a. Liabilities

b. Accounts Payable

190
Q

Cash and Retained Earnings appear on ______ statements

A

2

191
Q

Return on Assets (ROA)

A

Measures how profitably a company uses its assets. Net Income / Average Total Assets

192
Q

Return on assets is one of the many tools that users of ___(a)___ can use to determine ___(b)___

A

a. financial statements

b. how well a company is performing

193
Q

Return on assets is calculated by dividing ___(a)___ by average ___(b)___

A

a. net income

b. total assets

194
Q

Average total assets is calculated by adding ___(a)___ for the time period and dividing by ___(b)___

A

a. the beginning and ending total assets

b. 2

Accounting for Managers (15 decks)

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