Question 1

Target takes its net sales and subtracts the cost of goods sold during the previous period.The result is Target's

Accepted Answer

A)  gross sales. 
B)  net income. 
C)  gross profit. 
D)  net margin. 
E)  net purchases. 
A)  gross sales. 
B)  net income. 
C)  gross profit. 
D)  net margin. 
E)  net purchases.

Question 2

In order for The Gift Market,a local specialty store,to purchase Christmas merchandise for selling in its store,it had to borrow money from a local bank.This debt owed to the bank is a(n)

Accepted Answer

A)  liability. 
B)  expense. 
C)  owners' equity. 
D)  asset. 
E)  credit. 
A)  liability. 
B)  expense. 
C)  owners' equity. 
D)  asset. 
E)  credit.

Question 3

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Accepted Answer

A) True 
 B)False

Question 4

For the previous year,Marilyn's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues.Marilyn's

Accepted Answer

A)  had a net income of $325,000 for the year. 
B)  had a net loss of $25,000 for the year. 
C)  lost $25,000 in revenues. 
D)  acquired an additional $295,000 in assets. 
E)  increased its stockholders' equity by $25,000. 
A)  had a net income of $325,000 for the year. 
B)  had a net loss of $25,000 for the year. 
C)  lost $25,000 in revenues. 
D)  acquired an additional $295,000 in assets. 
E)  increased its stockholders' equity by $25,000.

Question 5

Ruin Company's net sales for the period were $175,000.Its cost of goods sold was $85,000.What is this firm's gross profit on sales?

Accepted Answer

A)  $175,000 
B)  $135,000 
C)  $125,000 
D)  $100,000 
E)  $90,000 
A)  $175,000 
B)  $135,000 
C)  $125,000 
D)  $100,000 
E)  $90,000

Question 6

The earnings statement is another term for the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of financial position. 
D)  owners' equity statement. 
E)  capital statement. 
A)  balance sheet. 
B)  income statement. 
C)  statement of financial position. 
D)  owners' equity statement. 
E)  capital statement.

Question 7

The cost of goods sold divided by the average inventory equals the

Accepted Answer

A)  gross profit on operations. 
B)  beginning inventory value. 
C)  merchandise inventory. 
D)  ending inventory value. 
E)  inventory turnover. 
A)  gross profit on operations. 
B)  beginning inventory value. 
C)  merchandise inventory. 
D)  ending inventory value. 
E)  inventory turnover.

Question 8

Operations managers need management information in all of the following areas except

Accepted Answer

A)  the cost of production. 
B)  current inventory levels. 
C)  availability of resources. 
D)  future capitalization needs. 
E)  present and future sales levels. 
A)  the cost of production. 
B)  current inventory levels. 
C)  availability of resources. 
D)  future capitalization needs. 
E)  present and future sales levels.

Question 9

Managerial accounting generates financial statements and reports for interested people outside an organization.

Accepted Answer

A) True 
 B)False

Question 10

Management and employees are the groups that would be most likely to evaluate the risk associated with investing in a company's stocks,bonds,or securities.

Accepted Answer

A) True 
 B)False

Question 11

Salma's Spices imports spices from all of the world.Salma repackages them in glass bottles of various designs.She has one wall on which she displays all of the spices alphabetically in matching bottles.She also has tables on which she groups spices from different regions so cooks do not have to search throughout the store from them.In addition to spices,she sells regional cookbooks and displays them with the spices.Some of the cookbooks are imported from the country of origin and in the original language,others are purchased in the United States and printed in English.When she knows a particular recipe calls for a unique cooking dish or utensil,she purchases these and displays them with the cookbooks and spices.When Salma imports spices and cookbooks she pays an import facilitator to handle all of the importing paperwork,pick up the goods,and pay any fees that may be due.Salma is required to reimburse the company for the fees.Salma's shop is on a main street in the older part of her city but the area is frequented by tourists.She pays monthly rent and utilities,and pays for a business license,security system,cleaning service,accounting service,all store supplies and display materials,and has two employees.Her monthly profit is about $10,000.On an income statement,where would the spice jars,spices,cookbooks,utensils and cooking dishes be found?

Accepted Answer

A)  Revenues 
B)  Cost of goods sold 
C)  Operating expenses 
D)  Net income 
A)  Revenues 
B)  Cost of goods sold 
C)  Operating expenses 
D)  Net income

Question 12

The number of times a firm sells and replaces its merchandise inventory in one year is known as its

Accepted Answer

A)  cost of goods sold. 
B)  gross profit on operations. 
C)  inventory turnover. 
D)  accounts receivable turnover. 
E)  net purchases. 
A)  cost of goods sold. 
B)  gross profit on operations. 
C)  inventory turnover. 
D)  accounts receivable turnover. 
E)  net purchases.

Question 13

An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

Accepted Answer

A) True 
 B)False

Question 14

​All of the following,except _____,can provide answers to a variety of questions about a firm's ability to do business and stay in business,its profitability,and its value as an investment.

Accepted Answer

A)  ​bank statements 
B)  ​balance sheet 
C)  ​income statement 
D)  ​statement of cash flows 
A)  ​bank statements 
B)  ​balance sheet 
C)  ​income statement 
D)  ​statement of cash flows

Question 15

Salaries payable,accounts payable,and taxes payable are examples of

Accepted Answer

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

Question 16

What isinventory turnover and how is it calculated? Why is it important for a manager to track this ratio?

Accepted Answer

Inventory turnover is a financial ratio

Question 17

Describe each of the five functions of a management information system.

Accepted Answer

The five functions of an MIS include:(1)

Question 18

Today corporations are required to send their stockholders an annual report.Assume that you are a prospective investor trying to decide if you should invest in a specific corporation.What type of information is contained in an annual report that would help you decide if this is the right investment for you?

Accepted Answer

Information on the income statement incl

Question 19

Hillary Nettles works for a marketing and advertising firm.She must choose one ad piece from a number of potential ad pieces.To ensure that she makes the right decision,she should

Accepted Answer

A)  put a brief description of each ad piece in a hat and draw one. 
B)  ignore any feedback that she gets from coworkers and consumers and make the decision herself. 
C)  gather information from coworkers and consumers on their reaction to the different ad pieces. 
D)  let her supervisor choose the ad piece. 
E)  discard all ad pieces and develop a new advertising campaign. 
A)  put a brief description of each ad piece in a hat and draw one. 
B)  ignore any feedback that she gets from coworkers and consumers and make the decision herself. 
C)  gather information from coworkers and consumers on their reaction to the different ad pieces. 
D)  let her supervisor choose the ad piece. 
E)  discard all ad pieces and develop a new advertising campaign.

Question 20

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

Accepted Answer

A) True 
 B)False

Target takes its net sales and subtracts the cost of goods sold during the previous period.The result is Target's

In order for The Gift Market,a local specialty store,to purchase Christmas merchandise for selling in its store,it had to borrow money from a local bank.This debt owed to the bank is a(n)

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

For the previous year,Marilyn's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues.Marilyn's

Ruin Company's net sales for the period were $175,000.Its cost of goods sold was $85,000.What is this firm's gross profit on sales?

The earnings statement is another term for the

The cost of goods sold divided by the average inventory equals the

Operations managers need management information in all of the following areas except

Managerial accounting generates financial statements and reports for interested people outside an organization.

Management and employees are the groups that would be most likely to evaluate the risk associated with investing in a company's stocks,bonds,or securities.

The number of times a firm sells and replaces its merchandise inventory in one year is known as its

An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

All of the following,except _____,can provide answers to a variety of questions about a firm's ability to do business and stay in business,its profitability,and its value as an investment.

Salaries payable,accounts payable,and taxes payable are examples of

What isinventory turnover and how is it calculated? Why is it important for a manager to track this ratio?

Describe each of the five functions of a management information system.

Hillary Nettles works for a marketing and advertising firm.She must choose one ad piece from a number of potential ad pieces.To ensure that she makes the right decision,she should

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

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

Exam 15: Using Management and Accounting Information

Target takes its net sales and subtracts the cost of goods sold during the previous period.The result is Target's

In order for The Gift Market,a local specialty store,to purchase Christmas merchandise for selling in its store,it had to borrow money from a local bank.This debt owed to the bank is a(n)

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

For the previous year,Marilyn's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues.Marilyn's

Ruin Company's net sales for the period were $175,000.Its cost of goods sold was $85,000.What is this firm's gross profit on sales?

The earnings statement is another term for the

The cost of goods sold divided by the average inventory equals the

Operations managers need management information in all of the following areas except

Managerial accounting generates financial statements and reports for interested people outside an organization.

Management and employees are the groups that would be most likely to evaluate the risk associated with investing in a company's stocks,bonds,or securities.

The number of times a firm sells and replaces its merchandise inventory in one year is known as its

An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

​All of the following,except _____,can provide answers to a variety of questions about a firm's ability to do business and stay in business,its profitability,and its value as an investment.

Salaries payable,accounts payable,and taxes payable are examples of

What isinventory turnover and how is it calculated? Why is it important for a manager to track this ratio?

Describe each of the five functions of a management information system.

Hillary Nettles works for a marketing and advertising firm.She must choose one ad piece from a number of potential ad pieces.To ensure that she makes the right decision,she should

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

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

All of the following,except _____,can provide answers to a variety of questions about a firm's ability to do business and stay in business,its profitability,and its value as an investment.