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257. Oklahoma Chemicals plans to use its computers to post information from journals to the
ledger instantaneously. One obvious benefit of this technology is:
258. Johnson Products is a small manufacturing firm specializing in custom-order tool and die
work. A computerized accounting system would help Johnson Products by:
259. The three important financial statements prepared by accountants are:
260. The __________ is an accounting statement that reports the financial condition of a firm
at a specific point in time.
261. A firm's ________ reports the profit or loss for the firm over a specified time period.
262. The _____ shows the assets, liabilities, and owners' equity of a firm, at a specific point in
time.
263. Which financial statement reports the company's revenues and selling costs over a period
of time?
264. A ___________ provides a summary of cash coming into and money going out of a firm
from operations activities, financing activities, and investing activities.
265. The balance sheet is composed of the following types of accounts:
266. A balance sheet lists assets in order of their ______________.
267. _________ refers to how quickly an asset can be converted into cash.
268. When companies owe money to creditors, suppliers, and others, these outstanding
amounts are recorded on the balance sheet as _________.
269. _______ refers to the value that stockholders or owners have in a company.
270. The fundamental accounting equation states: Assets = _________.
271. Company resources that are purchased with the intention that they will convert to cash
within one year are:
272. Resources that a firm owns are called:
273. The most liquid asset is:
274. Patents and copyrights are classified as ___________ on the Balance Sheet.
275. Debts that are due in one year or less are classified on the balance sheet as:
276. The value of resources the firm owns, minus the amount of money the firm owes to
others = ___________.
277. The _____ account on the balance sheet shows profits that the firm has reinvested in the
company.
278. Revenue, minus cost of goods sold = ____________.
279. Rent, depreciation, and salaries are examples of:
280. ________ is the monetary value that is received for goods sold, services rendered and
money received from other sources.
281. Net profit refers to:
282. Depreciation is a systematic write-off of the cost of a tangible asset that is listed on
__________.
283. The statement of cash flows identifies cash receipts and disbursements that result
______________.
284. The balance sheet is set up to reflect the Fundamental Accounting Equation. This
equation shows:
285. The bottom line of an income statement shows the firm's:
286. Expenses a firm incurs for insurance, office salaries, and rent are classified as:
287. Debts owed by a business are called __________.
288. FIFO and LIFO are two common:
289. The LIFO method of inventory valuation bases the cost of goods sold on the cost of:
290. _________ is the systematic write-off of the value of a tangible asset over its useful life.
291. Accounting recognizes that assets, such as machinery and buildings, lose value over time.
Accountants will record a portion of the cost of an asset as an expense each year through the use
of:
292. The ______________ shows how the capital is structured in the business, including the
value of assets and the amount the firm owes at a specific point in time.
293. Use the fundamental accounting equation to solve the following: Assets minus liabilities
equals:
294. Many business decisions are made in hopes of improving a firm's bottom line. Which of
the following financial statements will reveal a firm's bottom line?
295. A company's income statement is important to accountants and other stakeholders. It
reveals a:
296. When creating the income statement, which of the following statements is accurate?
297. Which of the following would be classified as a general expense on an income
statement?
298. During a period of rising prices, using FIFO (first-in, first-out) inventory valuation method
will result in ________ net income figures than would LIFO (last-in, first-out).
299. Retailers attempt to sell older merchandise before more recently acquired merchandise is
sold. The assumptions made by the __________ method of inventory valuation are most
consistent with this approach.
