Question 1

How do many small retail and wholesale businesses determine their cost of goods sold?

Accepted Answer

The answer of How do many small retail and wholesale...

Question 2

What do leverage ratios measure?

Accepted Answer

The answer of What do leverage ratios measure?...

Question 3

(p.129 (templates on Connect))A feasibility study will help you determine:

Accepted Answer

A) Whether your new business venture will be scrutinized by Revenue Canada. 
B) Whether your prospective business venture will be feasible or not. 
C) If you have to pay taxes on income earned by the business. 
D) The way to get around government regulations which could impede your business.

Question 4

A(n)_______ measures the company's sales and expenses during a specified period of time.

Accepted Answer

A) Balance sheet 
B) Ratio analysis 
C) Income statement 
D) Budget

Question 5

The three common groups into which financial ratios are typically arranged include all of the following,except:

Accepted Answer

A) Liquidity ratios 
B) Debt ratios 
C) Profitability ratios 
D) Leverage ratios

Question 6

Debts you expect to incur that will fall due in less than 12 months are considered:

Accepted Answer

A) Current liabilities 
B) Current assets 
C) Fixes assets 
D) Long-term liabilities

Question 7

Which of the following is an example of a fixed operating expense?

Accepted Answer

A) Rent 
B) Advertising and promotion expenses 
C) Wages and salaries 
D) Delivery expenses

Question 8

All of the following are required to construct a pro forma income statement,except:

Accepted Answer

A) Projected net sales 
B) Projected cost of goods sold 
C) Variable operating expenses 
D) Last period's actual sales

Exam 4: Legal Considerations