Accounting Multiple Choice Question Themes 1. Stakeholder use of accounting data (slide 6) 2.

Role of managerial accounting (page 483) Provide information to managers within the company to assist with decisions (in company)

3. Role of financial accounting (page 484) Provides information for people outside the company (Annual report)

4. Role of annual report (page 484) Provide information of financial condition, progress in an organization. Helps to see if goals are reached and to see the future clearer

5. Compliance (page 487) Renewing and evaluating records used to prepare a companies financial statement

6. Tax accounting (page 487) Trained in tax law and is responsible for preparing tax returns or developing tax strategies

7. Private and public accountants (page 486 487) Private works for a single firm, government agency Public provides service for a fee but isnt fill time

8. Role of the fundamental accounting equation (page 489 490) 9. The balance sheet (page 491, slide 23) The financial statement that reports a firms financial condition at a specific time

10. Assets (page 493) Economic resources (things of value) owned by a firm. 11. Liabilities and equity (page 493) 12. The income statement (page 494)

13. Revenue, Cost of Goods Sold, Operating Expenses and Net Profit (pages 494 496, slide 23) 14. Operating, investing and financing cash flows (page 496, slide 25) 15. Cash flow analysis (page 497 - 498) 16. Generally accepted accounting principles (page 499 and slides 48, 49 & 50) 17. IFRS (page 499, slide 61) 18. Accrual accounting (slides 55& 56) 19. Amortization, LIFO and FIFO; matching and estimating (page 500 and slides 57 & 58) 20. Role of ratios (page 501) 21. Role of context in evaluating numbers and ratios (slides 42 & 65) 22. Liquidity ratios (page 501 502) Current assets/Liabilities

23. Leverage ratios (page 502 and slides 66 & 68) Total Liabilities/Owners equity

24. Profitability ratios (pages 502 503, and slide 70 & 72) Net income after taxes/Average number of common stock shares outstanding

25. Activity ratios (pages 503 504, and slide 75) Cost of goods sold/Average inventory

26. Interview with Teresa Fortney (slide 78)