Question 1

A firm can measure its overall performance and find out how successfully it's being run by analyzing its _____ ratio.

Accepted Answer

A) management efficiency ratio 
B) industry condition ratio 
C) industrial strength ratio 
D) management effectiveness ratio 
A) management efficiency ratio 
B) industry condition ratio 
C) industrial strength ratio 
D) management effectiveness ratio

Question 2

On a company's balance sheet,_____ reflects the amount that a business has charged as depreciation expense on its long-term assets

Accepted Answer

A) accumulated depreciation 
B) expense depreciation 
C) straight line depreciation 
D) FIFO 
A) accumulated depreciation 
B) expense depreciation 
C) straight line depreciation 
D) FIFO

Question 3

The difference between your sales and your cost of goods sold is known as your _____.

Accepted Answer

A) net profit 
B) cost of doing business 
C) owner's equity 
D) gross profit or gross margin 
A) net profit 
B) cost of doing business 
C) owner's equity 
D) gross profit or gross margin

Question 4

The difference between gross profit and operating expenses is _____.

Accepted Answer

A) net income 
B) gross income 
C) profit 
D) cost of goods sold 
A) net income 
B) gross income 
C) profit 
D) cost of goods sold

Question 5

Its _____ measures the number of times that a firm's operating income can cover its interest expense.

Accepted Answer

A) operating coverage 
B) risk coverage 
C) interest coverage 
D) risk management ratio 
A) operating coverage 
B) risk coverage 
C) interest coverage 
D) risk management ratio

Question 6

The cost of using a long-term asset (such as a vehicle) that will be used in a business for several years is spread over the asset's useful life.Its annual allocated cost appears on the income statement as a(n) _____ expense.

Accepted Answer

A) receivable 
B) inventory 
C) depreciation 
D) variable 
A) receivable 
B) inventory 
C) depreciation 
D) variable

Question 7

Bakersfield works in management accounting.

Accepted Answer

A) True 
 B)False

Question 8

Vertical percentage analysis expresses each item on an income statement as a percentage of a certain base.

Accepted Answer

A) True 
 B)False

Question 9

In the summer of 2001, executives at Enron manipulated accounting reports to make the energy company look better off financially than it really was.

Accepted Answer

A) True 
 B)False

Question 10

Accounting is a "people profession," not just a number-crunching business.

Accepted Answer

A) True 
 B)False

Question 11

What do management effectiveness ratios tell a business?

Accepted Answer

Management effectiveness ratio

Question 12

A vertical income statement shows income for more than one year.

Accepted Answer

A) True 
 B)False

Question 13

The _____ Act severely restricts the ability of accountants to serve the same clients as both auditors and consultants.

Accepted Answer

A) Sarbanes-Oxley 
B) Fair Reporting 
C) Dawes Hawley 
D) Truth in Lending 
A) Sarbanes-Oxley 
B) Fair Reporting 
C) Dawes Hawley 
D) Truth in Lending

Question 14

_____ analysis allows a business to determine the level of sales that it must reach to avoid losing money.

Accepted Answer

A) Receivership 
B) Equity 
C) Breakeven 
D) Revenue 
A) Receivership 
B) Equity 
C) Breakeven 
D) Revenue

Question 15

Businesses that sell services rather than merchandise don't have a line for _____ on their statements.

Accepted Answer

A) operating expenses 
B) sales expenses 
C) interest expenses 
D) cost of goods sold 
A) operating expenses 
B) sales expenses 
C) interest expenses 
D) cost of goods sold

Question 16

The _____ ratio may suggest that inventory is moving quickly even though the rate of turnover is slowing.

Accepted Answer

A) profit margin 
B) management effectiveness 
C) management efficiency 
D) financial control 
A) profit margin 
B) management effectiveness 
C) management efficiency 
D) financial control

Question 17

Breakeven analysis is a method of determining the level of sales at which a company will have no profit or loss.

Accepted Answer

A) True 
 B)False

Question 18

What does interest coverage ratio report?

Accepted Answer

Interest coverage ratio is a f

Question 19

What is a certified management accountant, and how does one earn the title?

Accepted Answer

Accountants who pass a special exam and

Question 20

_____ are principles for financial reporting established by an independent agency called the Financial Accounting Standards Board.

Accepted Answer

A) Accounting guidelines 
B) Government approved accounting standards 
C) Certified rules and regulations 
D) Generally accepted accounting principles 
A) Accounting guidelines 
B) Government approved accounting standards 
C) Certified rules and regulations 
D) Generally accepted accounting principles

A firm can measure its overall performance and find out how successfully it's being run by analyzing its _____ ratio.

On a company's balance sheet,_____ reflects the amount that a business has charged as depreciation expense on its long-term assets

The difference between your sales and your cost of goods sold is known as your _____.

The difference between gross profit and operating expenses is _____.

Its _____ measures the number of times that a firm's operating income can cover its interest expense.

The cost of using a long-term asset (such as a vehicle) that will be used in a business for several years is spread over the asset's useful life.Its annual allocated cost appears on the income statement as a(n) _____ expense.

Bakersfield works in management accounting.

Vertical percentage analysis expresses each item on an income statement as a percentage of a certain base.

In the summer of 2001, executives at Enron manipulated accounting reports to make the energy company look better off financially than it really was.

Accounting is a "people profession," not just a number-crunching business.

What do management effectiveness ratios tell a business?

A vertical income statement shows income for more than one year.

The _____ Act severely restricts the ability of accountants to serve the same clients as both auditors and consultants.

_____ analysis allows a business to determine the level of sales that it must reach to avoid losing money.

Businesses that sell services rather than merchandise don't have a line for _____ on their statements.

The _____ ratio may suggest that inventory is moving quickly even though the rate of turnover is slowing.

Breakeven analysis is a method of determining the level of sales at which a company will have no profit or loss.

What does interest coverage ratio report?

What is a certified management accountant, and how does one earn the title?

_____ are principles for financial reporting established by an independent agency called the Financial Accounting Standards Board.

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 12: The Role of Accounting in Business

A firm can measure its overall performance and find out how successfully it's being run by analyzing its _____ ratio.

On a company's balance sheet,_____ reflects the amount that a business has charged as depreciation expense on its long-term assets

The difference between your sales and your cost of goods sold is known as your _____.

The difference between gross profit and operating expenses is _____.

Its _____ measures the number of times that a firm's operating income can cover its interest expense.

The cost of using a long-term asset (such as a vehicle) that will be used in a business for several years is spread over the asset's useful life.Its annual allocated cost appears on the income statement as a(n) _____ expense.

Bakersfield works in management accounting.

Vertical percentage analysis expresses each item on an income statement as a percentage of a certain base.

In the summer of 2001, executives at Enron manipulated accounting reports to make the energy company look better off financially than it really was.

Accounting is a "people profession," not just a number-crunching business.

What do management effectiveness ratios tell a business?

A vertical income statement shows income for more than one year.

The _____ Act severely restricts the ability of accountants to serve the same clients as both auditors and consultants.

_____ analysis allows a business to determine the level of sales that it must reach to avoid losing money.

Businesses that sell services rather than merchandise don't have a line for _____ on their statements.

The _____ ratio may suggest that inventory is moving quickly even though the rate of turnover is slowing.

Breakeven analysis is a method of determining the level of sales at which a company will have no profit or loss.

What does interest coverage ratio report?

What is a certified management accountant, and how does one earn the title?

_____ are principles for financial reporting established by an independent agency called the Financial Accounting Standards Board.

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters