D196 OBJECTIVE ASSESSMENT FINAL REVIEW
Why might employees be interested in their company's financial accounting
information?
Financial statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
Financial Accounting Standards Board (FASB)
Which type of account are accounts payable and notes payable both examples of?
Liability
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
How is gross profit computed?
sales - cost of goods sold = gross profit
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity?
Paying employees
How does a classified balance sheet provide useful information to a decision maker?
It distinguishes between current and long-term assets
What information does a balance sheet provide to a decision maker?
Summary of the financial position of a company at a particular date
What is the proper accounting for a product cost?
Record as an inventory cost until the item is sold
How could a period cost be reported in an income statement?
As an administrative expense
Why might employees be interested in their company's financial accounting
information?
Financial statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
Financial Accounting Standards Board (FASB)
Which type of account are accounts payable and notes payable both examples of?
Liability
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
How is gross profit computed?
sales - cost of goods sold = gross profit
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity?
Paying employees
How does a classified balance sheet provide useful information to a decision maker?
It distinguishes between current and long-term assets
What information does a balance sheet provide to a decision maker?
Summary of the financial position of a company at a particular date
What is the proper accounting for a product cost?
Record as an inventory cost until the item is sold
How could a period cost be reported in an income statement?
As an administrative expense
