Exam 1: Fundamentals of the Business World

Hurley has just finished recording the monthly journal entries for VOL Company. It is the end of the quarter and he wants to verify the accuracy of the ledger. Hurley should proceed by

Braylon is the accountant at Full-Grain Wood Flooring. Full-Grain had gross profits of $500,000, sales returns and allowances of $50,000, and cost of goods sold of $300,000. Full-Grain's average value of its inventory is $75,000. What is the inventory turnover ratio for the company?

Sunee's employees love her management style, and most have been with her since she started the business. They would not work for anyone else. Sunee's employees are a(n) ________ asset.

Zenon is an accountant for the United Way, a charitable organization. Zenon is a(n) ________ accountant.

Luxury Tapestries had sales of $500,000 and returns and allowances of $50,000. Its cost of goods sold was $200,000 and it had operating expenses of $150,000. Calculate net income for the company.

A mechanic took out a mortgage from a bank to buy the garage he and his employees work out of. How would this be listed on a balance sheet?

Jasper is preparing an income statement for his business. He calculated his gross profits but in order to determine the company's profit before and after taxes, Jasper needs to

Thiago is reviewing the books for Spare Bowling Supplies. He notices that the books are not balancing and finds a cash sale that was entered as a $50 debit to cash and a $5 credit to revenue. Based on this information we know that Thiago is most likely using a(n) ________ bookkeeping system.

Delores is a financial accountant. One of her roles is to

Emre is an accountant for Vincentia Office Supplies. Due to her increasing workload, she was given permission to hire a part-time employee to assist with recording the company's financial transactions. What would be the most appropriate title she should use for her job posting?

Dream Ice Cream Company paid $500,000 in salaries last year along with $25,000 in income tax. How would you best classify these expenses if you were preparing its cash flow statement?

The essential characteristic of current assets is their

The cash flow statement reports disbursement relating to the firm's operating activities, investing activities, financing activities, and

The ________ ratio measures the extent to which a company uses debt to finance its operations.

Coletta is preparing the balance sheet for Zebra Athletics. She is struggling to determine how to classify the stocks her company owns prior to running the statement and asks for your help. You tell her that stocks are classified as

A company's insurance costs, supplies, and utilities are all ________ expenses.

The CEO of Trust-T Parts asks his accountant to report on the company's profit margin. Trust-T Parts had sales of $750,000 and returns and allowances of $20,000. Its gross profit was $215,000 and it had operating expenses of $175,000 and income taxes of $5,000. Help the accountant with her calculation.

Cash balance is the balance in the firm's cash account at the end of the year.

The debt to owners' equity ratio consists of cost of goods sold in one year divided by the average value of the inventory.

Alabaster Enterprises has net income of $35,000, total assets of $300,000, common stock of $50,000, and retained earnings of $25,000. Calculate its return on investment.