Business Final

____analysis refers to calculations that measure an organization's financial health.
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Terms in this set (49)
Depreciation, a type of expense account, is included in the ________ category.general and administrativeGeri's Gift Store wants to compute the revenues and expenses for its most recent accounting period to determine if it is making extra cash that it can use to invest in increased long-term capacity or to pay off its debts. To determine this, Geri should calculate cash from ________ activities by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.operatingIn the context of expense accounts, salaries of executives and their staff are included under the category of ________ expenses.general and administrativeKaden works for a publishing company, recording its routine, day-to-day business transactions. His main responsibility is obtaining and recording the information his company needs to analyze its financial position. Based on this description, Kaden is most likely a(n)bookkeeper.Management's greatest single concern is ________, which is the movement of money through an organization over a daily, weekly, monthly, or yearly flowNonbusiness entities typically obtain revenue throughdonations.Potential investors typically study the ________ in a firm's annual report to determine whether the company meets their investment statementsReturn on assets and return on equity are examples of ________ ratios.profitabilityThe ________ presents a snapshot of an organization's financial position at a given moment.balance sheetThe first step in the accounting cycle is toexamine source documents.The single most important component of an annual report is thesignature of a certified public accountant.What are the fundamentals of the accounting process?the accounting equation and the double-entry bookkeeping systemWhat is the last step that must be taken before a public corporation's books can be closed for an accounting cycle?A CPA must attest that generally accepted accounting principles were used.When Hunter opened his fish and tackle store, he convinced his family and friends to invest in the store. They invested money and assets to help him start and grow his business. The money and assets these investors contributed to Hunter's store comprise hisowners' equity.Which equation is equivalent to the accounting equation?owners' equity = assets - liabilitiesWhich statement is TRUE regarding financial statements?idk yet________ accounts are similar to interest-bearing checking accounts, but with more restrictions.Money market________ allow consumers to perform an ever-widening array of financial transactions from their personal or work computers.Online banking services________ are businesses that protect their clients against financial losses from certain specified risks in exchange for a fee, called a premium.Insurance companies________ are preferred over currency for many transactions due to their lower risk of loss.Checks________ are savings accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely.Certificates of deposits________ banking refers to companies performing banking functions of some sort that are not regulated by banking regulators.Shadow________ is the study of how money is managed by individuals, companies, and governments.FinanceA characteristic of commercial banks is that theyrely on checking and savings accounts for funds.A checking account is also called a demand deposit becausefunds may be withdrawn by its owner without advance notice.A paper money that is not readily convertible to a precious metal such as gold is referred to asfiat money.All of the following are major responsibilities of the Federal Reserve Board EXCEPTproviding short-term loans to businesses.As a measure of value, money primarily serves as a(n)common standard or yardstick of the worth of goods and services.Credit cards are a popular substitute for cash payments because theyare accepted by merchants around the world.Food Nation, a large grocery store, has its own credit card that customers can sign up for to save money. Customers using this card receive special weekly coupons for items in the store. What type of credit card is described in this scenario?a reward cardIn general, the longer the term of a certificate of deposit, thehigher is its interest rate.Kayla works at a hospital that has its own credit union. Her savings account at this credit union is called a(n)share account.Nonbanking institutions differ from banking institutions in that theydo not accept deposits.Superior Savings Bank is holding $20 million in deposits, with a 10 percent reserve requirement. As a result, the bank must have reserves of $2 million. If the Federal Reserve Board reduced the reserve requirement to 5 percent, what would this mean for Superior Savings Bank?. The bank could lend to customers the $1 million difference between the old reserve level and the new lower reserve level.The major difference between banks and credit unions is thatcredit unions are owned and controlled by their depositors.Tonya has a savings and checking account at Big City Bank. She is about to have some home repairs done, so she wants to make sure that she has enough funds in her checking account. She uses her smartphone to transfer money from her savings account into her checking account. Which method of electronic banking does this scenario best describe?an electronic funds transferWhen the Federal Reserve Board increases the reserve requirements, themoney supply declines.Which legislative act restricted commercial banks from engaging in certain high-risk trading activities and also raised the required capital that banks must hold on their balance sheets?The Dodd-Frank ActYou feel confident that a $20 bill will buy tomorrow what it can buy today. This exemplifies which characteristic of money?stability