Unit 5 Final Exam

1. Is the function in a business that acquires funds for the firm and manages those funds within the firm.
2. Is a six-step procedure that results in the preparation and analysis of major financial statements.
3. Covers liability arising out of defective products sold.
4. Is a summary of all the financial data in the account ledgers to see whether they are correct and balanced.
5. Guarantees payment of wages, medical care, and rehabilitation services for employees who are injured on the job.
10. Summarizes a company's cash receipts and cash payments over a period of time.
12. Replaces part of your income if you become disabled and can no longer work, but you usually must be disabled for a specified period of time before benefits are provided.
14. Covers losses from fires, accidents, or theft.
16. Refers to the chance of loss, the degree of probability of loss, and the amount of possible loss.

1. The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of ____________.
3. Also called malpractice insurance, covers people who are found liable for professional negligence.
6. Involves the potential of either a profit or a loss.
7. Is the area of accounting that provides managers inside the organization with information they need to make decisions.
8. Records revenues and then subtracts all expenses (including taxes) in order to calculate net income.
9. Reports A firm's financial condition on a specific date.
11. The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as ____________.
13. Refers to how fast an asset could be converted into cash.
14. Involves the threat of fire, accident, or loss.
15. Is a step in the accounting cycle that involves transferring information from the journal into the appropriate accounts in a ledger statement of cash flows.