Question 1

Briefly describe the major change in the business environment caused by the passing of Sarbanes-Oxley.

Accepted Answer

The public accounting industry

Question 2

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

Accepted Answer

A) inventory 
B) net worth 
C) net margin 
D) profitability 
E) acid-test 
A) inventory 
B) net worth 
C) net margin 
D) profitability 
E) acid-test

Question 3

What kind of a financial statement shows revenues, gross sales, and net sales?

Accepted Answer

the income

Question 4

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

Accepted Answer

A) True 
 B)False

Question 5

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

Accepted Answer

A) profitability 
B) price-earnings 
C) total asset 
D) inventory turnover 
E) sales to inventory 
A) profitability 
B) price-earnings 
C) total asset 
D) inventory turnover 
E) sales to inventory

Question 6

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment.It had sales of $300,000 during the last quarter.Its gross profit sold was $120,000.On an income statement, an accountant would classify the remaining $180,000 as:

Accepted Answer

A) operating expenses 
B) production income 
C) cost of production 
D) cost of goods sold 
E) net production costs 
A) operating expenses 
B) production income 
C) cost of production 
D) cost of goods sold 
E) net production costs

Question 7

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

Accepted Answer

A) True 
 B)False

Question 8

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?

Accepted Answer

A) functional 
B) incidental 
C) operating 
D) revenue 
E) communication 
A) functional 
B) incidental 
C) operating 
D) revenue 
E) communication

Question 9

______ are amounts owed to the firm by customers who bought goods and services on credit.

Accepted Answer

The answer of ______ are amounts owed to the firm...

Question 10

_____ ratios are ratios that measure how well a firm uses its assets.

Accepted Answer

The answer of _____ ratios are ratios that measure how...

Question 11

On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include:

Accepted Answer

A) the flashcards used to tutor math students 
B) the promotional sign at the entrance to the building where the tutoring takes place 
C) the money borrowed to purchase the furniture in the tutorial area and the interest owed on that debt 
D) the reputation of the tutors working for the service 
E) the students who benefit from the service 
A) the flashcards used to tutor math students 
B) the promotional sign at the entrance to the building where the tutoring takes place 
C) the money borrowed to purchase the furniture in the tutorial area and the interest owed on that debt 
D) the reputation of the tutors working for the service 
E) the students who benefit from the service

Question 12

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

Accepted Answer

A) earnings per share 
B) net profit margin 
C) return on equity 
D) net working capital 
E) current ratio 
A) earnings per share 
B) net profit margin 
C) return on equity 
D) net working capital 
E) current ratio

Question 13

U.S.Carburetion Inc.makes natural gas and gasoline powered generators.Assume the company had $100,000 in net sales for the week of September 11th.Cost of goods sold was $42,000.On an income statement, the remaining $58,000 would be classified as:

Accepted Answer

A) gross revenues 
B) net income 
C) general income 
D) net revenues 
E) gross profit 
A) gross revenues 
B) net income 
C) general income 
D) net revenues 
E) gross profit

Question 14

For which of the following assets would a wholesale company use depreciation?

Accepted Answer

A) gasoline used to power its delivery trucks 
B) its patented computer tracking equipment 
C) its warehouses 
D) its accounts receivable 
E) its inventory of unsold merchandise 
A) gasoline used to power its delivery trucks 
B) its patented computer tracking equipment 
C) its warehouses 
D) its accounts receivable 
E) its inventory of unsold merchandise

Question 15

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

Accepted Answer

A) negative liability 
B) net liability 
C) net loss 
D) owners' negative equity 
E) net expense 
A) negative liability 
B) net liability 
C) net loss 
D) owners' negative equity 
E) net expense

Question 16

List three measures of a company's liquidity.

Accepted Answer

the current ratio, t

Question 17

_____ are debts that are to be paid within twelve months.

Accepted Answer

A) Fixed liabilities 
B) Current assets 
C) Fixed assets 
D) Current liabilities 
E) Intangible liabilities 
A) Fixed liabilities 
B) Current assets 
C) Fixed assets 
D) Current liabilities 
E) Intangible liabilities

Question 18

The income statement is a snapshot of the firm's financial position at a certain point in time.

Accepted Answer

A) True 
 B)False

Question 19

In the accounting field, CMA stands for:

Accepted Answer

A) certified motivational accountant 
B) centralized managerial accountant 
C) consolidated monetary auditor 
D) certified managerial accountant 
E) certified monetary auditor 
A) certified motivational accountant 
B) centralized managerial accountant 
C) consolidated monetary auditor 
D) certified managerial accountant 
E) certified monetary auditor

Question 20

The ratio of total current assets to current liabilities is called the _____ ratio.

Accepted Answer

A) profitability 
B) activity 
C) net margin 
D) net worth 
E) current 
A) profitability 
B) activity 
C) net margin 
D) net worth 
E) current

Briefly describe the major change in the business environment caused by the passing of Sarbanes-Oxley.

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

What kind of a financial statement shows revenues, gross sales, and net sales?

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment.It had sales of $300,000 during the last quarter.Its gross profit sold was $120,000.On an income statement, an accountant would classify the remaining $180,000 as:

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?

______ are amounts owed to the firm by customers who bought goods and services on credit.

_____ ratios are ratios that measure how well a firm uses its assets.

On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include:

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

U.S.Carburetion Inc.makes natural gas and gasoline powered generators.Assume the company had $100,000 in net sales for the week of September 11^th.Cost of goods sold was $42,000.On an income statement, the remaining $58,000 would be classified as:

For which of the following assets would a wholesale company use depreciation?

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

List three measures of a company's liquidity.

_____ are debts that are to be paid within twelve months.

The income statement is a snapshot of the firm's financial position at a certain point in time.

In the accounting field, CMA stands for:

The ratio of total current assets to current liabilities is called the _____ ratio.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

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Exam 14: Using Financial Information and Accounting

Briefly describe the major change in the business environment caused by the passing of Sarbanes-Oxley.

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

What kind of a financial statement shows revenues, gross sales, and net sales?

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment.It had sales of $300,000 during the last quarter.Its gross profit sold was $120,000.On an income statement, an accountant would classify the remaining $180,000 as:

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?

______ are amounts owed to the firm by customers who bought goods and services on credit.

_____ ratios are ratios that measure how well a firm uses its assets.

On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include:

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

U.S.Carburetion Inc.makes natural gas and gasoline powered generators.Assume the company had $100,000 in net sales for the week of September 11th.Cost of goods sold was $42,000.On an income statement, the remaining $58,000 would be classified as:

For which of the following assets would a wholesale company use depreciation?

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

List three measures of a company's liquidity.

_____ are debts that are to be paid within twelve months.

The income statement is a snapshot of the firm's financial position at a certain point in time.

In the accounting field, CMA stands for:

The ratio of total current assets to current liabilities is called the _____ ratio.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

Filters

U.S.Carburetion Inc.makes natural gas and gasoline powered generators.Assume the company had $100,000 in net sales for the week of September 11^th.Cost of goods sold was $42,000.On an income statement, the remaining $58,000 would be classified as: