BUS 508 Chapter 15 Quiz
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BUS 508 Chapter 15 Quiz

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BUS 508 Chapter 15 Quiz 1. The ________ states that assets must equal liabilities plus owners’ equity. 2. Of the four financial statements, only the balance sheet is considered to be a permanent statement; its amounts are carried over from year to year. 3. ________ is a record of the change in owners’ equity from the end of one fiscal period to the end of the next. 4. The final figure on the income statement is the so-called ________. 5. The ________ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials in order to win or continue business. 6. ________ are principles that encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time. 7. The ________ carefully monitors changing business conditions, enacting new rules and modifying existing rules when necessary. 8. A firm’s ________ shows its financial position on a particular date. 9. Ratios do not assist managers by interpreting actual performance and making comparisons to what should have happened. 10. ________ is the process of measuring, interpreting, and communicating financial information to enable people inside and outside the firm to make informed decisions. 11. A ________ is a planning and controlling tool that reflects the firm’s expected sales revenues, operating expenses, and cash receipts and outlays. 12. Accounting professionals fulfill important responsibilities beyond preparing financial statements. 13. Liabilities and owners’ equity indicate the sources of the firm’s assets and are listed in the order in which they are due. 14. The ________ feature describes recent developments in the accounting profession in China and Hong Kong. 15. ________ is the process by which accounting transactions are recorded. 16. A firm’s ability to meet its short-term obligations when they must be paid is measured by ________. 17. ________ is the owner’s initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends. 18. A fiscal year has to coincide with the calendar year, and companies set different fiscal years. 19. Accounting software programs are not used widely in both large and small businesses today. 20. ________ recognizes revenues and costs when they occur, not when actual cash changes hands.

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