Business 101: chapter 14
The process of collecting, recording, classifying, summarizing, reporting, and analyzing
financial activities. - ANS-accounting
The ratio of total current assets excluding inventory to total current liabilities; used to
measure a firm's liquidity. - ANS-acid-test(quick) ratio
ratios that measure how well a firm uses its assists. - ANS-activity ratios
A yearly document that describes a firm's financial status and usually discusses the
firm's activities during the past year and its prospects in the future. - ANS-annual report
things of value owned by a firm - ANS-assets
The process of reviewing the records used to prepare a financial statements and issuing
a formal auditor's opinion indicating whether the statements have been prepared in
accordance with accepting accounting rules. - ANS-auditing
a financial statement that summarizes a firms' financial position at a specific point in
time. - ANS-balance sheet
a managerial accountant who has completed a professional certification program,
including passing an exam. - ANS-certified management accountant (CMA)
an accountant who has completed an approved bachelors degree program, passed a
test prepared by the American institute of CPAs, and met state requirements. only a
CPA can issue an auditor's opinion on a firm's financial statements. - ANS-certified
public accountant (CPA)
the total expense of buying or producing a firm's goods or services. - ANS-cost of goods
sold
assets that can and will be converted to cash within the next 12 months. - ANS-current
assets
short-term claims that are due within a year of the date of the balance. - ANS-current
liabilities
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