Exam 17: Using Management and Accounting Information

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio?

Beginning inventory plus net purchases minus ending inventory equals

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

Which type of manager would be most concerned with information about the products offered by competitors?

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

The process of systematically collecting, analyzing, and reporting financial information is called

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Ebony Jones is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements. Ebony is a

The cash at the end of the year reported on the statement of cash flows is the same as the

According to the Sarbanes-Oxley Act, the FTC is required to establish a full- time, five-member federal oversight board that will police the accounting industry.

Knowledge management is a firm's procedures for using computer software to solve business problems.

Debts that will be repaid in one year or less are known as current liabilities.

When Josh sold his Internet auction site to eBay, he received $2,000,000 more than the total value of his assets as listed on his balance sheet. How will eBay classify this $2,000,000?

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

Managers and other groups interested in a firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers. Why do you think corporate executives "cook" their company's books?

KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all

An audit is

Audited financial statements guarantee that a firm has not "cooked" the books.

The Dress Barn offered its customers a reduction in price on some clothing items that were slightly faded from being in the window at the front of the store. This reduction is called a