Exam 2: Business Processes and Accounting Information

Using the financial statements below calculate each of the following ratios and briefly describe what the results of each indicate. Return on Investment Quick Ratio Debt to Equity Ratio Return on Owners' Equity Accounts Receivable Turnover Inventory Turnover

Which of the following will not require an adjustment to the company's cash balance?

Which of the following reflects a weakness in the internal control for cash?

The profit making activities of an enterprise are referred to as:

When a company operates in an uncertain environment that has rapidly changing products it is more likely to have an

Which of the following businesses would have the shortest customer response time?

An law firm purchases a $100,000 computer system for its accounting department.This is an example of a(n):

From the information below create a two-column bank reconciliation for the month of November 2008 for the Purinton Corporation. (a.) Nov 30, 2008 cash balance per book is $35,152.22 (b.) Bank statement balance at Nov 30, 2008 is $32,450.78 (c.) The following checks are outstanding. (d.) A memo included in the bank statement indicates that Dan Short had a NSF check for $933. (e.) The bank service charge for the month is $38. (f.) Cash receipts of $2,300 deposited Nov 30, 2008 were not included in the bank statement. (g.) A check for $483 was deposited and correctly recorded by the bank but the company incorrectly recorded the deposit for $438 on their books. (h.) A check for $567 written by another company was incorrectly deducted from the Purinton checking account.

On a bank reconciliation,which of the following will reduce the bank's cash balance?

Scherzo Company purchased equipment from Rondo Corporation for $20,000.Scherzo paid no cash at the time of purchase.Instead Rondo permitted Scherzo to pay for the equipment by making four annual payments of $5,000.For Scherzo and for Rondo what processes are being used by these events? Explain your answer.

Customer response time is part of which of the following balanced scorecard perspectives?

A sporting-goods store sells a set of golf clubs to a customer for cash.This is an example of a(n):

The Balanced Scorecard Approach is part of which of the following processes?

The bookkeeper who records cash receipts also deposits daily cash receipts at the bank on his way home from work.This is a violation of which of the following characteristics of good internal control:

Chili Willi,a restaurant serving southwestern cuisine,purchases a new chili pot for $25,000.This is an example of a(n):

A delivery service purchases a new truck for $130,000.This is an example of a(n):

The profitability generated by the net assets (assets-liability)of a corporation would be best measured by the:

Eastwood Company pays its employees every Friday.This is an example of a(n):

Using the financial statements from the (instructor supplies the income statement and balance sheet of a company and insert name here)calculate each of the following ratios and briefly describe what the results indicate. (a.) Return on Investment (b.) Quick Ratio (c.) Gross Margin Ratio (d.) Current Ratio (e.) Return on Sales Ratio (f.) Debt to Equity Ratio (g.) Return on Owners' Equity

Which of the following will required the cash on the books of the company to be adjusted?