FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Using Accounting Information

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Wiseman Bookstores has an accounts receivable turnover of 12.This means that

A) the company sells and replaces its merchandise inventory twelve times each year.
B) one-twelfth of the company's assets are financed by creditors.
C) the company's sales figure is twelve times its accounts receivable figure.
D) the company collects its accounts receivable about every thirty days.
E) the company had $12 in assets for every $1 of current liabilities.

F) A) and E)
G) B) and E)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following statements is false?

A) It is possible to compare one firm's accounting data with another firm's accounting data as long as both firms used generally accepted accounting procedures.
B) Many managers compare the financial results from one accounting period with the results from previous accounting periods.
C) Most corporations include in their annual reports comparisons of important elements of their financial statements for recent years.
D) The format and information contained in one firm's financial statements are most likely to differ from the format and information contained in another firm's financial statements.
E) Many firms compare their financial results with industry averages.

F) B) and C)
G) C) and D)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

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

What is a profitability ratio? What is a short-term financial ratio? Why are these ratios important?

Explain why a firm's financial statements should be audited.

A book of original entry is called the _____.

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

Christine's First Job Christine has just earned her undergraduate degree in accounting and has successfully completed the CPA exam.She recently interviewed with a relatively small and new company and was offered a job.The offer sounded very promising; the job had opportunities to grow with the company and provided diverse challenges.Christine accepted the job. Once Christine started working, she realized that the owners and employees did not have a general understanding of accounting.She had to teach them the steps in an accounting cycle so they would be able to understand how she was going to create reports.When she talked about the statement of financial position, they had no idea what she was talking about.She was the qualified individual responsible for accounting.No one else working with her had much knowledge.They did not even know the different financial ratios that someone could use to understand the financial standing of a company.Christine knows it will be a challenge to keep everyone on the same page when it comes to numbers and reports. -Refer to Christine's First Job.If the owners did not recognize the term "statement of financial position," Christine could use which of the following more common terms?

A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

The form of financial statement used varies for different businesses, from a neighborhood video arcade to a giant conglomerate.

Beginning inventory plus net purchases minus ending inventory equals _____.

APSCO Lighting, Inc., had a gross profit of $234,000 for the last twelve-month period.Operating expenses were $185,000.What was APSCO's net income before taxes?

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?

As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets-$124,000; current liabilities-$41,000; long-term liabilities-$13,000.What is the total owners' equity for this company?

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

Brown Shoe Co.is a small shoe manufacturer with only 25,000 shares of common stock outstanding.It has net sales of $550,000 for the year and a net income of $29,000.What is Brown's earnings per share?

Rick and Joe get together and start a mortgage brokerage business.They each contribute $25,000 of capital to the business.After the first year of operation, the total owners' equity is listed as $60,000.Most likely, the additional $10,000 of owners' equity is _____.

Chase invests $5,000 of his own money in his new auto detailing business.He then obtains a loan and builds a small workshop in his backyard for $10,000.At this point assets are ____, liabilities are ____, and owners' equity is ____.

Net income is the profit earned (or the loss suffered) by a firm during an accounting period after the cost of goods sold and all expenses have been deducted from revenues.

Merchandise that has been sold and is returned to the firm by the customer is called _____.