Exam 12: The Role of Accounting in Business

You can calculate inventory turnover dividing cost of goods sold by _____.

Expenses are divided into two categories-cost of goods sold and operating expenses.

_____ shows when your total sales revenues exactly equal your expenses.

_____ costs vary with quantity of goods sold but remain constant on a per?unit basis.

You can regard the "bottom line" and "net income" as the same thing.

You're reading an article entitled _____, which explains how and why a business divides its fixed costs by its contribution margin per unit.

A firm's chief accounting officer is called a(n) _____.

Business student Maurice Langdon can use _____ analysis to show the relationship between two numbers.

After calculating how efficiently the client's assets are being managed, Brenda must figure management effectiveness ratios.

Firms that provide clients with accounting and tax services are called _____ accounting firms.

Cash flows from _____ activities result from obtaining or paying back the funds with which you've financed your business.

Rather than record sales and purchases made on credit, your statement of _____ tells you where your cash came from and where it went.

Define gross profit and net income.

The key to surviving in business is generating cash to keep operating.

The purpose of accounting is to help _____, who are interested in the activities of a business because they're affected by them.

Your _____ statement shows your revenues and expenses.

Management effectiveness ratios measure overall company performance and show how successfully management is at running the business.

A classified balance sheet lists assets in order of _____.

Define vertical percentage analysis.

Your balance sheet will report Waterford's _____.