Exam 1: Fundamentals of the Business World

Moments Photography purchased a new fleet of hybrid vehicles last year. When completing the cash flow statement, an accountant would classify the fleet purchase as

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Question 1

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Blakeleigh is an accountant with Salt Lake Higher Education. Her friend is a college professor and asks her to lead a short presentation about the four different types of accounting ratios and what they are used for. The professor is also hoping she can provide an example, including the formula, of each ratio to share with the students.

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Sure, I'd be happy to help with that presentation. The four different types of accounting ratios are liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios.

Liquidity ratios measure a company's ability to meet its short-term obligations. An example of a liquidity ratio is the current ratio, which is calculated by dividing current assets by current liabilities.

Profitability ratios measure a company's ability to generate profit. An example of a profitability ratio is the return on equity, which is calculated by dividing net income by shareholders' equity.

Solvency ratios measure a company's ability to meet its long-term obligations. An example of a solvency ratio is the debt-to-equity ratio, which is calculated by dividing total liabilities by shareholders' equity.

Efficiency ratios measure how well a company is using its assets. An example of an efficiency ratio is the asset turnover ratio, which is calculated by dividing net sales by average total assets.

I can provide examples and formulas for each of these ratios to share with the students during the presentation.

According to the Generally Accepted Accounting Principles (GAAP), financial statements must be relevant, consistent, reliable, and

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On the balance sheet, insurance would be listed a(n)

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Question 4

Rashid is analyzing his firm's financial statements to provide top management with a better understanding of the firm's financial performance. One way to do this is through ________ analysis.

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Question 5

Tessa is asked to complete the efficiency ratio for her employer's new product line. Which formula should she use to make this calculation?

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Question 6

Unshakeable Smoothies has an outstanding reputation in the community thanks to its many charitable donations. The company's reputation is an example of , a type of .

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Question 7

Aubrey just graduated and wants to find a job where she can perform audits to ensure the accuracy of financial information. What kind of job would be most appropriate for her?

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Question 8

Pretzels & Pilates is trying a new retail model that combines selling salted pretzels before a rigorous Pilates workout in order to "carbo load." At the end of the first six months, how could P&P determine its pretzel inventory turnover ratio?

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Question 9

Batteries Emporium has cash on hand of $45,000, along with $15,000 in marketable securities and $30,000 in receivables. Its current liabilities are $90,000. Calculate its acid-test ratio.

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Question 10

Upstart Solutions has cash of $25,000, inventory of $50,000, land valued at $100,000, mortgage payable of $90,000, and accounts payable of $5,000. What is the amount of its stockholders' equity?

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Question 11

Ratio analysis can be used to analyze a firm's performance compared to

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Question 12

The ________ provides a summary of a company's financial condition on a given date.

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Question 13

Lenders and suppliers use financial accounting to evaluate credit ratings.

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Question 14

What is the name of the standards that accountants must follow to ensure the financial statements they prepare are relevant, reliable, consistent, and comparable?

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Question 15

Ersan is participating in a career workshop at the local college. A student asks him how he evaluates the variables in financial statements to provide managers and investors with a better understanding of financial performance. Ersan replies that ________ analysis provides him with four different tools to help with his evaluation.

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Question 16

Paresh called his investors to let them know that the funds received from all sales of the firm's products reached $1 million, not counting returns or allowances. Paresh was referring to his

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Question 17

In addition to their salary, FAQ Training provides its sales and marketing team with a budget for advertising and supplies. How would you best classify these expenses on the income statement?

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Question 18

Scales Gym Supply has a very high inventory turnover ratio compared to its competitors. What does this most likely indicate?

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Question 19

Yelena just completed her income statement. She included her company's sales revenue, operating expenses, and net income. Which principal part of an income statement did Yelena forget to include?

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Question 20

Showing 1 - 20 of 83

Moments Photography purchased a new fleet of hybrid vehicles last year. When completing the cash flow statement, an accountant would classify the fleet purchase as

According to the Generally Accepted Accounting Principles (GAAP), financial statements must be relevant, consistent, reliable, and

On the balance sheet, insurance would be listed a(n)

Rashid is analyzing his firm's financial statements to provide top management with a better understanding of the firm's financial performance. One way to do this is through ________ analysis.

Tessa is asked to complete the efficiency ratio for her employer's new product line. Which formula should she use to make this calculation?

Unshakeable Smoothies has an outstanding reputation in the community thanks to its many charitable donations. The company's reputation is an example of , a type of .

Aubrey just graduated and wants to find a job where she can perform audits to ensure the accuracy of financial information. What kind of job would be most appropriate for her?

Pretzels & Pilates is trying a new retail model that combines selling salted pretzels before a rigorous Pilates workout in order to "carbo load." At the end of the first six months, how could P&P determine its pretzel inventory turnover ratio?

Batteries Emporium has cash on hand of $45,000, along with $15,000 in marketable securities and $30,000 in receivables. Its current liabilities are $90,000. Calculate its acid-test ratio.

Upstart Solutions has cash of $25,000, inventory of $50,000, land valued at $100,000, mortgage payable of $90,000, and accounts payable of $5,000. What is the amount of its stockholders' equity?

Ratio analysis can be used to analyze a firm's performance compared to

The ________ provides a summary of a company's financial condition on a given date.

Lenders and suppliers use financial accounting to evaluate credit ratings.

What is the name of the standards that accountants must follow to ensure the financial statements they prepare are relevant, reliable, consistent, and comparable?

Paresh called his investors to let them know that the funds received from all sales of the firm's products reached $1 million, not counting returns or allowances. Paresh was referring to his

In addition to their salary, FAQ Training provides its sales and marketing team with a budget for advertising and supplies. How would you best classify these expenses on the income statement?

Scales Gym Supply has a very high inventory turnover ratio compared to its competitors. What does this most likely indicate?

Yelena just completed her income statement. She included her company's sales revenue, operating expenses, and net income. Which principal part of an income statement did Yelena forget to include?

Acting Ethically and Socially Responsible

Fundamentals of Economics and Types of Markets

The Development of the Global Economy

Entrepreneurship: From Startup to Growth

Accounting and Financial Statements

Core Components of Finance and Banking

Securities, Investments, and Financial Literacy

Essentials of Leadership and Management

Operations Management

Human Resource Management and Labor Relations

Organizational Behavior

Introduction to Marketing

Products

Pricing and Distribution

Promotion Mix: Tools, Goals, and Strategies

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Exam 1: Fundamentals of the Business World

Moments Photography purchased a new fleet of hybrid vehicles last year. When completing the cash flow statement, an accountant would classify the fleet purchase as

According to the Generally Accepted Accounting Principles (GAAP), financial statements must be relevant, consistent, reliable, and

On the balance sheet, insurance would be listed a(n)

Rashid is analyzing his firm's financial statements to provide top management with a better understanding of the firm's financial performance. One way to do this is through ________ analysis.

Tessa is asked to complete the efficiency ratio for her employer's new product line. Which formula should she use to make this calculation?

Unshakeable Smoothies has an outstanding reputation in the community thanks to its many charitable donations. The company's reputation is an example of ________, a type of ________.

Aubrey just graduated and wants to find a job where she can perform audits to ensure the accuracy of financial information. What kind of job would be most appropriate for her?

Pretzels & Pilates is trying a new retail model that combines selling salted pretzels before a rigorous Pilates workout in order to "carbo load." At the end of the first six months, how could P&P determine its pretzel inventory turnover ratio?

Batteries Emporium has cash on hand of $45,000, along with $15,000 in marketable securities and $30,000 in receivables. Its current liabilities are $90,000. Calculate its acid-test ratio.

Upstart Solutions has cash of $25,000, inventory of $50,000, land valued at $100,000, mortgage payable of $90,000, and accounts payable of $5,000. What is the amount of its stockholders' equity?

Ratio analysis can be used to analyze a firm's performance compared to

The ________ provides a summary of a company's financial condition on a given date.

Lenders and suppliers use financial accounting to evaluate credit ratings.

What is the name of the standards that accountants must follow to ensure the financial statements they prepare are relevant, reliable, consistent, and comparable?

Paresh called his investors to let them know that the funds received from all sales of the firm's products reached $1 million, not counting returns or allowances. Paresh was referring to his

In addition to their salary, FAQ Training provides its sales and marketing team with a budget for advertising and supplies. How would you best classify these expenses on the income statement?

Scales Gym Supply has a very high inventory turnover ratio compared to its competitors. What does this most likely indicate?

Yelena just completed her income statement. She included her company's sales revenue, operating expenses, and net income. Which principal part of an income statement did Yelena forget to include?

Acting Ethically and Socially Responsible

Fundamentals of Economics and Types of Markets

The Development of the Global Economy

Entrepreneurship: From Startup to Growth

Accounting and Financial Statements

Core Components of Finance and Banking

Securities, Investments, and Financial Literacy

Essentials of Leadership and Management

Operations Management

Human Resource Management and Labor Relations

Organizational Behavior

Introduction to Marketing

Products

Pricing and Distribution

Promotion Mix: Tools, Goals, and Strategies

Filters

Unshakeable Smoothies has an outstanding reputation in the community thanks to its many charitable donations. The company's reputation is an example of , a type of .