# Chapter 13 Flashcards

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1
Q

What involves the determination and control of cost?

A

cost accounting

2
Q

What is an area of accounting concerned with an independent review of accounting records

A

auditing

3
Q

What is concerned with the reporting of transactions for an organization and the periodic preparation of various reports from these records?

A

Financial accounting

4
Q

What uses historical and estimated financial data to assist management in daily operations and in planning future operations?

A

Managerial accounting

5
Q

what is the formula of depreciation, which is the systematic means by which costs associated with the acquisition and installation of a fixed asset are allocated over the estimated useful life of the asset

A

(Cost of the asset - salvage value)/ Years of useful life

6
Q

What is the statement of assets, liabilities or debts, and capital or owner’s equity at a given time or at the ned of the accounting period?

A

Balance Sheet

7
Q

what is the financial report that presents the net income or profit of an organization for the accounting period?

A

Income statement

8
Q

What are resources of a company?

A

Assets

9
Q

What is the debts of a company?

A

liabilities

10
Q

What is the money value of a company in excess of its debts that is held by the owners

A

owner’s equity

11
Q

What is analysis of financial data in terms of relationships, facilitates interpretation and understanding

A

ratio analysis

12
Q

What is the ratio between x and y may be stated as x to y (x:y). for example, an operation that has 12 full-time employees and 4 part-time employees would have a full-time to part-time employee is ratio to 3 to 1

A

common ratio

13
Q

What is the ratio may be expressed as a percentage, such as a percentage of sales

A

as a percentage

14
Q

Some relationships are best expressed as a turnover or the number of times x must be ‘turned over’ to yield the value of y, calculated by dividing y by x. The nu,her of times inventory is turned over in a month is one example

A

as a turnover

15
Q

What is the relationship may also be expressed in dollars per unit, such as sales dollars per seat at a restaurant

A

on a per unit basis

16
Q

What ratio indicate the organization’s ability to meet current obligations in other words, its ability to pay bills when done?

A

liquidity ratios

17
Q

What is the ratio is the relationship between current assets to current liabilities? Current ratio = current assets/current liabilities

A

current ratio

18
Q

What is the formula for acid-test ratio?

A

acid-test ratio = (cash + accounts receivable + marketable securities)/ current liabilities

19
Q

What ratios are used to examine an establishment’s ability to meet its long-term financial obligation and its financial leverage? Solvency Ratio & what is the formula?

A

Solvency ratio = Total assets/total liabilities

20
Q

What is another activity ratio important in many segments of the industry? Percentage of occupancy. & what is the formula?

A

Percentage of occupancy = (No. of beds/rooms occupied) / No. of beds/rooms available

21
Q

What ratio measures the ability of an organization to generate profit in relation to sales or the investment in assets

A

profitability ratios

22
Q

What are the three major profitability ratios?

A

Profit margin= Net profit/ sales

Return on equity = net profit/ equity

Return on assets = net profit/ total assets

23
Q

What are primarily concerned with analysis of the success of the operation in generating revenues and in controlling expenses

A

Operating ratios