Question 1

The value of goods on hand for sale to customers is called

Accepted Answer

A)  sales. 
B)  merchandise inventory. 
C)  cost of goods sold. 
D)  prepaid expenses. 
E)  operating expenses. 
A)  sales. 
B)  merchandise inventory. 
C)  cost of goods sold. 
D)  prepaid expenses. 
E)  operating expenses.

Question 2

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

Accepted Answer

A firm's current ratio can be used to ev

Question 3

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Accepted Answer

A)  financing 
B)  business 
C)  receiving 
D)  operating 
E)  investing 
A)  financing 
B)  business 
C)  receiving 
D)  operating 
E)  investing

Question 4

All of the following are classified as fixed assets except

Accepted Answer

A)  factory equipment. 
B)  a company car. 
C)  computers held for resale. 
D)  property. 
E)  buildings. 
A)  factory equipment. 
B)  a company car. 
C)  computers held for resale. 
D)  property. 
E)  buildings.

Question 5

Cindy provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

Accepted Answer

A)  expenses 
B)  cash 
C)  revenues 
D)  retained earnings 
E)  equity 
A)  expenses 
B)  cash 
C)  revenues 
D)  retained earnings 
E)  equity

Question 6

Cassie has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as

Accepted Answer

A)  accounts notable. 
B)  accounts receivable. 
C)  notes payable. 
D)  prepaid wages. 
E)  salaries payable. 
A)  accounts notable. 
B)  accounts receivable. 
C)  notes payable. 
D)  prepaid wages. 
E)  salaries payable.

Question 7

The current ratio is calculated by dividing

Accepted Answer

A)  current assets by owners' equity. 
B)  current assets by current liabilities. 
C)  income by operating expenses. 
D)  net sales after taxes by net sales. 
E)  accounts receivable by inventory turnover. 
A)  current assets by owners' equity. 
B)  current assets by current liabilities. 
C)  income by operating expenses. 
D)  net sales after taxes by net sales. 
E)  accounts receivable by inventory turnover.

Question 8

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as

Accepted Answer

A)  current assets. 
B)  long-term liabilities. 
C)  fixed assets. 
D)  owners' equity. 
E)  revenue. 
A)  current assets. 
B)  long-term liabilities. 
C)  fixed assets. 
D)  owners' equity. 
E)  revenue.

Question 9

A prepaid expense would be classified as

Accepted Answer

A)  an expense. 
B)  an unearned revenue. 
C)  a liability. 
D)  an asset. 
E)  cost of goods sold. 
A)  an expense. 
B)  an unearned revenue. 
C)  a liability. 
D)  an asset. 
E)  cost of goods sold.

Question 10

Debts that are to be repaid in two years are referred to as

Accepted Answer

A)  expenses. 
B)  current assets. 
C)  long-term liabilities. 
D)  fixed assets. 
E)  current liabilities. 
A)  expenses. 
B)  current assets. 
C)  long-term liabilities. 
D)  fixed assets. 
E)  current liabilities.

Question 11

​What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Accepted Answer

A)  ​$30,000 
B)  ​$300,010 
C)  ​$ 3,000,000 
D)  ​$ 3,000 
A)  ​$30,000 
B)  ​$300,010 
C)  ​$ 3,000,000 
D)  ​$ 3,000

Question 12

Without the audit function and GAAP,there would be very little oversight or supervision of corporate accounting practices.

Accepted Answer

A) True 
 B)False

Question 13

In 1987,the Securities and Exchange Commission (SEC)and the Financial Accounting Standards Board (FASB)required all publicly traded companies to include a statement of cash flows along with the balance sheet and income statement in their annual report.

Accepted Answer

A) True 
 B)False

Question 14

Dividing current assets by current liabilities gives the current ratio.

Accepted Answer

A) True 
 B)False

Question 15

Pam's Copy Shop is in the process of organizing its assets in the appropriate order.They ask you for help in arranging the following assets: equipment,accounts receivable,cash,merchandise inventory,and notes receivable.You list ____ first and ____ last.

Accepted Answer

A)  merchandise inventory;notes receivable 
B)  accounts receivable;equipment 
C)  notes receivable;accounts receivable 
D)  equipment;accounts receivable 
E)  cash;equipment 
A)  merchandise inventory;notes receivable 
B)  accounts receivable;equipment 
C)  notes receivable;accounts receivable 
D)  equipment;accounts receivable 
E)  cash;equipment

Question 16

The process of spreading the cost of a fixed asset over the asset's useful life is called

Accepted Answer

A)  expensing. 
B)  depreciation. 
C)  apportioning. 
D)  crediting. 
E)  distributing. 
A)  expensing. 
B)  depreciation. 
C)  apportioning. 
D)  crediting. 
E)  distributing.

Question 17

How would it be easier to determine if a firm made or lost money last year-by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

Accepted Answer

The quickest way to determine if a firm

Question 18

The cost of goods sold for Peterson Fashions is $360,000.The beginning inventory for the firm was $20,000.Twelve months later the ending inventory was $40,000.What is the firm's inventory turnover?

Accepted Answer

A)  6 times a year 
B)  9 times a year 
C)  12 times a year 
D)  18 times a year 
E)  24 times a year 
A)  6 times a year 
B)  9 times a year 
C)  12 times a year 
D)  18 times a year 
E)  24 times a year

Question 19

Most data gathered for an MIS come from

Accepted Answer

A)  customers. 
B)  bankers. 
C)  external sources. 
D)  internal sources. 
E)  information obtained from data firms. 
A)  customers. 
B)  bankers. 
C)  external sources. 
D)  internal sources. 
E)  information obtained from data firms.

Question 20

On a balance sheet,assets are listed in order,from the most liquid to the least liquid.

Accepted Answer

A) True 
 B)False

The value of goods on hand for sale to customers is called

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

All of the following are classified as fixed assets except

Cindy provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

Cassie has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as

The current ratio is calculated by dividing

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as

A prepaid expense would be classified as

Debts that are to be repaid in two years are referred to as

What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Without the audit function and GAAP,there would be very little oversight or supervision of corporate accounting practices.

In 1987,the Securities and Exchange Commission (SEC)and the Financial Accounting Standards Board (FASB)required all publicly traded companies to include a statement of cash flows along with the balance sheet and income statement in their annual report.

Dividing current assets by current liabilities gives the current ratio.

Pam's Copy Shop is in the process of organizing its assets in the appropriate order.They ask you for help in arranging the following assets: equipment,accounts receivable,cash,merchandise inventory,and notes receivable.You list first and last.

The process of spreading the cost of a fixed asset over the asset's useful life is called

How would it be easier to determine if a firm made or lost money last year-by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

The cost of goods sold for Peterson Fashions is $360,000.The beginning inventory for the firm was $20,000.Twelve months later the ending inventory was $40,000.What is the firm's inventory turnover?

Most data gathered for an MIS come from

On a balance sheet,assets are listed in order,from the most liquid to the least liquid.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Choosing a Form of Business Ownership

Small Business,Entrepreneurship,and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

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Exam 15: Using Management and Accounting Information

The value of goods on hand for sale to customers is called

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

All of the following are classified as fixed assets except

Cindy provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

Cassie has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as

The current ratio is calculated by dividing

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as

A prepaid expense would be classified as

Debts that are to be repaid in two years are referred to as

​What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Without the audit function and GAAP,there would be very little oversight or supervision of corporate accounting practices.

In 1987,the Securities and Exchange Commission (SEC)and the Financial Accounting Standards Board (FASB)required all publicly traded companies to include a statement of cash flows along with the balance sheet and income statement in their annual report.

Dividing current assets by current liabilities gives the current ratio.

Pam's Copy Shop is in the process of organizing its assets in the appropriate order.They ask you for help in arranging the following assets: equipment,accounts receivable,cash,merchandise inventory,and notes receivable.You list ____ first and ____ last.

The process of spreading the cost of a fixed asset over the asset's useful life is called

How would it be easier to determine if a firm made or lost money last year-by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

The cost of goods sold for Peterson Fashions is $360,000.The beginning inventory for the firm was $20,000.Twelve months later the ending inventory was $40,000.What is the firm's inventory turnover?

Most data gathered for an MIS come from

On a balance sheet,assets are listed in order,from the most liquid to the least liquid.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Choosing a Form of Business Ownership

Small Business,Entrepreneurship,and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters

What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Pam's Copy Shop is in the process of organizing its assets in the appropriate order.They ask you for help in arranging the following assets: equipment,accounts receivable,cash,merchandise inventory,and notes receivable.You list first and last.