Exam 16: Accounting for Financial Success

What is the ratio of total current assets to current liabilities called?

Bert Yelverton has a 20-year mortgage on the building where his office is located.The mortgage is an example of which of the following?

Profitability ratios measure how well a company uses its assets.

What is another term for owners' equity?

Which of the following is the process of distributing the original cost of a long-term asset over the years of its useful life?

On an income statement,operating expenses that cannot be linked to cost of goods sold or to sales are known as which type of expense?

Wehrmann-Longo sells landscape rocks to retailers.It recently purchased a trainload of lava rocks from a mine in Hawaii.Until Wehrmann-Longo pays the bill,the purchase will be carried on the Hawaiian company's books as which of the following?

The Jolly Green Giant appears on all packages of frozen and canned vegetables and other dishes sold by the Green Giant Company.Because it does not have a physical existence,what is the Jolly Green Giant?

Which of the following summarizes an organization's financial status at the end of an accounting period?

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the company and is turned into sales,which of the following ratios is calculated?

The postage stamps and petty cash in the architect's drawer as well as his drawing table,his office furniture,and money owed to him by clients are all examples of assets.

After all expenses have been subtracted from revenues on an income statement,if the final figure is positive,it is known as which of the following?

All publicly held companies must include a statement of cash flows in their financial reports to shareholders.

Auditors are correctly portrayed as bean-counters.

Accounting is the process of collecting,recording,classifying,summarizing,reporting,and analyzing the financial condition of an organization.

What do debt ratios measure?

What is another name for the ratio of net profit to net sales?

Which of the following deals with reporting to outsiders?

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1,2007,and it had $5,000 worth of inventory on December 31,2007.If its cost of goods sold for that period was $10,000,and its net profit was $9,000,which of the following represents its inventory turnover ratio?

What is accounting?