Chapter 15

Question 1

Data presented in a from

That is useful for a specific purpose

Answer 1

Information

Question 2

A single collection of data and information stored in one place that can be used by people throughout an organization to make decisions

Answer 2

Database

Question 3

A firms procedures for generating, using and sharing the data and information

Answer 3

Knowledge management (KM)

Question 4

A system that provides managers and employees with the information they need to preform their jobs as effectively as possible

Answer 4

Management information system(MIS)

Question 5

The transformation of data into a form that is useful for a specific purpose

Answer 5

Data processing

Question 6

A measure that summarizes a particular characteristic of an entire group of numbers

Answer 6

Statistic

Question 7

A type of software program that provides relevant data and information to help a firms employees make decisions

Answer 7

Decisions-support system (DSS)

Question 8

A computer based system that facilitates and supports the decision making needs of top managers and señor executives by providing easy access to both internal and external information

Answer 8

Executive information system (EIS)

Question 9

A type of computer program that uses artificial intelligence to imitate a humans ability to think

Answer 9

Expert system

Question 10

The process of collecting analyzing and reporting financial information

Answer 10

Accounting

Question 11

An examination of a companies financial statements and the accounting practices that produce them

Answer 11

Audit

Question 12

An accepted set of guidelines and practices for U.S. companies reporting financial information and for the accounting profession

Answer 12

Generally accepted accounting principles (GAAPs)

Question 13

Provides managers and employees with the information needed to make decisions about a firms financing, investing marketing and operating activities

Answer 13

Managerial accounting

Question 14

Generates financial statements and reports for interested people outside an organization

Answer 14

Financial accounting

Question 15

The resources that a business owns

Answer 15

Assets

Question 16

A firms debts and obligations

Answer 16

Liabilities

Question 17

The difference between a firms assets and liabilities

Answer 17

Owners equity

Question 18

The basis for the accounting process

Assets=liabilities + owners equity

Answer 18

Accounting equation

Question 19

A system in which each financial transaction is recorded as two seperate accounting entries to maintain the balance shown in the accounting equation

Answer 19

Double entry bookkeeping system

Question 20

A report distributed to stockholders and other interested parties that describes the firms operating activities and financial condition

Answer 20

Annual report

Question 21

A summary of the dollar amount of a firms assets liabilities and owners equity accounts at the end of a specific accounting period

Answer 21

Balance sheet ( or statement of financial position)

Question 22

Numerical or verbal description that usually result from some sort of measurement

Answer 22

Data

Question 23

assets that can be converted quickly into cash or that will be used in one year or less

Answer 23

Current assets

Question 24

Assets that will be held or used for a period longer than one year

Answer 24

Fixed assets

Question 25

The process of apportioning the cost of a fixed asset over the period during which it will be used

Answer 25

Depreciation

Question 26

Assets that do not exist physically but that have a value based on the rights or privileges they confer on a firm

Answer 26

Intangible assets

Question 27

Debts that will be repaid in one year or less

Answer 27

Current liabilities

Question 28

Debts that will not be repaid for at least one year

Answer 28

Long-term liabilities

Question 29

The per portion of a firms profits not distributed to stockholders

Answer 29

Retained earnings

Question 30

A summary of a firms revenues and expenses during a specified accounting period

Answer 30

Income statement

Question 31

The dollar amounts earned by a firm from selling goods, providing services or performing business activities

Answer 31

Revenues

Question 32

The total dollar amount of all goods and services sold during the accounting period

Answer 32

Gross sales

Question 33

The actual dollar amount received by a firm for the goods and services it has sold after adjustment for returns allowances and discounts

Answer 33

Net sales

Question 34

The dollar amount equal to beginning inventory plus net purchases less ending inventory

Answer 34

Cost of goods sold

Question 35

A firms net sales less the cost of goods sold

Answer 35

Gross profit

Question 36

All business costs other than the cost of goods sold

Answer 36

Operating expenses

Question 37

Occurs when revenues exceed expenses

Answer 37

Net income

Question 38

Occurs when expenses exceed revenues

Answer 38

Net loss

Question 39

A statement that illustrates how the companies operating investing and financing activities affect cash during an accounting period

Answer 39

Statement of cash flow

Question 40

A number that shows the relationship between two elements of a firms financial statements

Answer 40

Financial ratio

Question 41

A financial ratio calculated by dividing net income after taxes by net sales

Answer 41

Return on sales ( profit margin)

Question 42

A financial ratio computed by dividing current assets by current liabilities

Answer 42

Current ratio

Question 43

A financial rati calculated by dividing the cost of goods sold in one year by the average value of the inventory

Answer 43

Inventory turnover

Question 44

The ease with which an asset can be converted into cash

Answer 44

Liquidity

Question 45

An individual who has met state requirements for accounting education and experience and has passed a rigorous accounting examination

Answer 45

Certified public accountant