MIE 201 EXAM #5 2024 WITH 100% CORRECT ANSWERS
accounting - correct answer ✔✔ is the recording, measurement, and interpretation of financial information.
certified public accountant (CPA) - correct answer ✔✔ an individual who has been certified by the state in which he or she practices to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records
forensic accounting - correct answer ✔✔ which is accounting that is fit for legal review. It involves analyzing financial documents in search of fraudulent entries or financial misconduct.
private accountants - correct answer ✔✔ Large corporations, government agencies, and other organizations may employ their own ____________________ to prepare and analyze their financial statements. With titles such as controller, tax accountant, or internal auditor, are deeply involved in many of the most important financial decisions of the organizations for which they work.
certified management accountants (CMAs) - correct answer ✔✔ Private accountants can be CPAs and may become ______________________________ by passing a rigorous examination by the Institute of Management Accountants.
bookkeeping - correct answer ✔✔ is typically limited to the routine, day-to-day recording of business transactions. These people are responsible for obtaining and recording the information that accountants
require to analyze a firm's financial position. They generally require less training than accountants.
Accountants - correct answer ✔✔ on the other hand, usually complete course work beyond their basic four- or five-year college accounting degrees. This additional training allows accountants not only to record financial information, but to understand, interpret, and even develop the sophisticated accounting systems necessary to classify and analyze complex financial information.
financial statements - correct answer ✔✔ managers and owners use ______________________ (1) to aid in internal planning and control and (2) for external purposes such as reporting to the Internal Revenue Service, stockholders, creditors, customers, employees, and other interested parties.
evaluate the return on stockholders' investments and the overall quality of the firm's management team. As a result, poor performance, as documented in the financial statements, often results in changes in top management.
Managerial accounting - correct answer ✔✔ refers to the internal use of accounting statements by managers in planning and directing the organization's activities. Cash flow is a large concern
cash flow - correct answer ✔✔ Perhaps management's greatest single concern is ____________________ the movement of money through an organization over a daily, weekly, monthly, or yearly basis.
budget - correct answer ✔✔ Managerial accountants also help prepare an organization's ________________, an internal financial plan that forecasts expenses and income over a set period of time. It is not unusual for an organization to prepare separate daily, weekly, monthly, and yearly budgets. Think of this as a financial map, showing how the company expects to move from Point A to Point B over a specific period of time
master budgets - correct answer ✔✔ While most companies prepare _____________ for the entire firm, many also prepare budgets for smaller segments of the organization such as divisions, departments, product lines, or projects.
"Top-down" master budgets - correct answer ✔✔ begin at the upper management level and filter down to the individual department level,
"bottom-up" budgets - correct answer ✔✔ start at the department or project level and are combined at the chief executive's office. Generally, the larger and more rapidly growing an organization, the greater will be the likelihood that it will build its master budget from the ground up.
External Uses: - correct answer ✔✔ Managers also use accounting statements to report the business's financial performance to outsiders. Such statements are used for filing income taxes, obtaining credit from lenders, and reporting results to the firm's stockholders. They become the basis for the information provided in the official corporate annual report
annual report - correct answer ✔✔ a summary of the firm's financial information, products, and growth plans for owners and potential investors. While frequently presented between slick, glossy covers, the single most important component of this is the signature of a certified public accountant attesting that the required financial statements are an accurate reflection of the underlying financial condition of the firm.
audited - correct answer ✔✔ Financial statements meeting these conditions are termed ________________The primary external users of audited accounting information are government agencies, stockholders and potential investors, lenders, suppliers, and employees.
one-third - correct answer ✔✔ Association of Certified Fraud Examiners (ACFE) revealed that fraud remains difficult to spot. In fact, ______________ of occupational fraud lasts at least two years before detection.
"tip-offs" - correct answer ✔✔ The ACFE states that _______________ remain the most effective means of catching a thief, revealing fraud three times as often as traditional reviews and accounting checks and
balances. Unfortunately, many employees fear that if they reveal fraud, they will face reprisals from supervisors or fellow employees
employee hotlines - correct answer ✔✔ To curb fraud, managers must find ways to encourage employees to step forward. One way is to set up anonymous ________________ Most tips (39.5 percent) come from anonymous telephone hotlines. To be safe, employers should also keep an eye out for lifestyle changes among employees. An upturn in an employee's fortunes may point to fraud.
Banks and other lenders look at financial statements to... - correct answer ✔✔ determine a company's ability to meet current and future debt obligations if a loan or credit is granted. To determine this ability,
- a short-term lender examines a firm's cash flow to assess its ability to repay a loan quickly with cash generated from sales. - A long-term lender is more interested in the company's profitability and indebtedness to other lenders.
Labor unions and employees use financial statements to... - correct answer ✔✔ establish reasonable expectations for salary and other benefit requests. Just as firms experiencing record profits are likely to
