1. What does accounting focus on(answer) The impact a business's activities have on its overall financial performance 2. Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time(answer) State- ment of cash flows 3. Which users would have a primary concern with an organization's ability to provide healthcare benefits(answer) Employees 4. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large publicly traded company(answer) The Public Com- pany Accounting Oversight Board (PCAOB) 5. What has had the most significant impact on accounting practices(answer) Infor- mation technology 6. What two items of information are revealed on the balance sheet? Choose 2 answers: Ownership. Debt 7. Which term is defined as the residual interest in the net assets of a company(answer) Owners' equity 8. A corporation has total liabilities of $300 million, total owners' equity of $100 million, and current assets of $50 million. What is the value of the firm's long-term assets(answer) $350 million 9. Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the firm is using accrual-basis accounting(answer) In 2014, a company provides services to a customer for which cash will be collected the next year (2015). 10. Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company(answer) Cash flows from financing activities 11. Where would an investor find a summary of a company's significant accounting policies(answer) In the notes to financial statements 12. Which assurance does an external audit report provide for its readers?- : The company's financial statements fairly reflect its financial position 13. Reliable: Information that can be verified 14. Relevant: Information having to do with the matter at hand 15. Material: Information that is important enough to make a difference 16. Conservatism: Information related to recognizing losses as they occur 17. steps in the decision cycle: 1 Prepare financial statements. 2 Analyze financial statements. 3 Gather information. 4 Make decision. 5 Implement decision 18. Partial financial information for a company is as follows: Current assets $36,543 Total assets $58,719 Current liabilities $24,824 Total liabilities $48,561 Stockholders' equity $10,158 Sales $46,997 Net Income $ 3,761 Market value of shares $41,316 What is the price-earnings (PE) ratio for this company(answer) 11.0 19. What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same(answer) Continual decrease in sales 20. Which two cash flow adequacy ratios represent a cash cow(answer) - $6,991/$5,486. $5,220/$1,875. 21. Which formula yields a cash times interest earned ratio of 11(answer) Cash before interest and taxes of $11,000 / cash paid for interest of $1,000