Exam 12: The Role of Accounting in Business

Dividing your inventory by your cost of goods sold will yield your inventory turnover rate.

The Kathryn Lorillard Co.'s income after taxes is called _____ income.

To find an inventory turnover ratio, you multiply ending inventory by Cost of goods sold.

If she wants to know how competently her company's assets are being managed, junior accountant Amy Duerkin will analyze its _____ ratio.

What was Rebecca's gross profit margin?

We read in business publications that net income is often called the _____.

The Sarbanes-Oxley Act allows accountants to serve the same clients as both auditors and consultants.

The annual allocation of the cost of a long-term asset is recorded as a(n) _____.

Accountants do all of the following _____.

Its _____ ratio examines the relationship between funds acquired from creditors and funds invested by owners.

In preparing the company's income statement, you'll report on all of the following items _____.

In preparing financial statements, accountants adhere to a uniform set of rules called government?approved accounting principles (GAAP).

To find out if you have made a profit, you will prepare a so?called "general statement," which shows revenues and expenses.

A _____ is a company that makes a profit by selling goods.

If you were asked to identify "the language of business," you should reply: _____.

If you sell merchandise rather than services, your financial statements won't have a cost-of-goods sold line.

During week two, you'll get some experience working with _____.

The current ratio shows the relationship between a company's current assets and its current liability.

To find out the relationship between assets that can be converted to cash within a year and liabilities that will be paid within a year, you can look up Zanzibar Corp.'s _____ ratio in its annual report.

Your _____ shows organizational sales, expenses, and profit.