HSM 340 Week 2 Quiz
1. (TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):
2. (TCO 2) Which method(s) of financial reporting does (do) not recognize the impact of changes in purchasing power?
3. (TCO 2) Which of the following is the BEST example of a financial metric?
4. (TCO 2) What is/(are) the primary determinant(s) of firm value?
5. (TCO 2) How are revenues and expenses defined under accrual accounting?
6. (TCO 2) What is an audit (in the context of financial accounting)?
7. (TCO 2) The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so?
8. (TCO 2) Define and describe the purpose of fund accounting (now called net assets).
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