Question 1

What is the ratio of net profit to the number of shares of common share outstanding?

Accepted Answer

A)  equity earnings 
B)  share-to-earnings ratio 
C)  earnings for profit 
D)  earnings per share (EPS) 
A)  equity earnings 
B)  share-to-earnings ratio 
C)  earnings for profit 
D)  earnings per share (EPS)

Question 2

Profitability ratios measure how well a company uses its assets.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future?

Accepted Answer

A)  an earnings report 
B)  a trial balance 
C)  an annual report 
D)  a company summary 
A)  an earnings report 
B)  a trial balance 
C)  an annual report 
D)  a company summary

Question 4

Revenues are the dollar amount of sales plus any other income received from sources such as interest, dividends, and rent.

Accepted Answer

A) True 
 B)False

Question 5

What kind of a financial statement shows revenues, gross sales, and net sales?

Accepted Answer

the income

Question 6

What are ratios of special interest to the company's creditors that measure the company's ability to pay short-term debts as they come due?

Accepted Answer

A)  liquidity ratios 
B)  earnings ratios 
C)  profitability ratios 
D)  current ratios 
A)  liquidity ratios 
B)  earnings ratios 
C)  profitability ratios 
D)  current ratios

Question 7

An example of an intangible asset is accounts receivable because the company does not see or feel it until it is paid in full.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the best example of a current asset for a clinical psychologist?

Accepted Answer

A)  the building in which his clinic is located 
B)  money he pays for rent and utilities 
C)  credit card charges by patients 
D)  his reputation as a compassionate man 
A)  the building in which his clinic is located 
B)  money he pays for rent and utilities 
C)  credit card charges by patients 
D)  his reputation as a compassionate man

Question 9

A summary of the money flowing into and out of a company during a certain period is called the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 10

How would the building, the parking lot, and the land owned by a superstore be listed on the store's balance sheet?

Accepted Answer

The answer of How would the building, the parking lot,...

Question 11

In the accounting field, CMA stands for which of the following?

Accepted Answer

A)  certified management accountant 
B)  centralized managerial accountant 
C)  certified motivational accountant 
D)  consolidated monetary auditor 
A)  certified management accountant 
B)  centralized managerial accountant 
C)  certified motivational accountant 
D)  consolidated monetary auditor

Question 12

What do inventory turnover ratios measure?

Accepted Answer

the speed with which

Question 13

The balance sheet summarizes a company's financial position over a period of time; for instance, three months or a year.

Accepted Answer

A) True 
 B)False

Question 14

Auditors are correctly portrayed as bean-counters.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT one of the three groups that the statement of cash flows divides the company's cash flow into?

Accepted Answer

A)  cash flow from investment activities 
B)  cash flow from exporting activities 
C)  cash flow from financing activities 
D)  cash flow from operating activities 
A)  cash flow from investment activities 
B)  cash flow from exporting activities 
C)  cash flow from financing activities 
D)  cash flow from operating activities

Question 16

Net sales is best described by which of the following?

Accepted Answer

A)  total sales for the accounting period 
B)  profit after cost of goods sold is deducted 
C)  amount after deducting sales discount and returns and allowances from gross sales 
D)  profit after all expenses are paid 
A)  total sales for the accounting period 
B)  profit after cost of goods sold is deducted 
C)  amount after deducting sales discount and returns and allowances from gross sales 
D)  profit after all expenses are paid

Question 17

What is another name for the ratio of net profit to net sales?

Accepted Answer

the net pr

Question 18

Myriad Canning Company has the following balance sheet figures for the year ending December 31, 200X:??Cash $1,000?Marketable securities $5,000?Inventory $3,000?Total current assets $9,000??Accounts payable $2,000?Notes payable $1,000?Total current liabilities $3,000??What is its net working capital?

Accepted Answer

A)  $1,000 
B)  $3,000 
C)  $6,000 
D)  $9,000 
A)  $1,000 
B)  $3,000 
C)  $6,000 
D)  $9,000

Question 19

Which of the following involves calculating and interpreting financial ratios taken from the company's financial statements in order to assess its condition and performance?

Accepted Answer

A)  organizational performance appraisal 
B)  ratio analysis 
C)  performance analysis 
D)  financial reporting 
A)  organizational performance appraisal 
B)  ratio analysis 
C)  performance analysis 
D)  financial reporting

Question 20

Net profit is the amount a company earns after paying to produce or buy its products but before deducting operating expenses.

Accepted Answer

A) True 
 B)False

What is the ratio of net profit to the number of shares of common share outstanding?

Profitability ratios measure how well a company uses its assets.

Which of the following is a yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future?

Revenues are the dollar amount of sales plus any other income received from sources such as interest, dividends, and rent.

What kind of a financial statement shows revenues, gross sales, and net sales?

What are ratios of special interest to the company's creditors that measure the company's ability to pay short-term debts as they come due?

An example of an intangible asset is accounts receivable because the company does not see or feel it until it is paid in full.

Which of the following is the best example of a current asset for a clinical psychologist?

A summary of the money flowing into and out of a company during a certain period is called the statement of cash flows.

How would the building, the parking lot, and the land owned by a superstore be listed on the store's balance sheet?

In the accounting field, CMA stands for which of the following?

What do inventory turnover ratios measure?

The balance sheet summarizes a company's financial position over a period of time; for instance, three months or a year.

Auditors are correctly portrayed as bean-counters.

Which of the following is NOT one of the three groups that the statement of cash flows divides the company's cash flow into?

Net sales is best described by which of the following?

What is another name for the ratio of net profit to net sales?

Which of the following involves calculating and interpreting financial ratios taken from the company's financial statements in order to assess its condition and performance?

Net profit is the amount a company earns after paying to produce or buy its products but before deducting operating expenses.

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Understanding Money and the Canadian Financial System

Finance

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Exam 16: Accounting for Financial Success

What is the ratio of net profit to the number of shares of common share outstanding?

Profitability ratios measure how well a company uses its assets.

Which of the following is a yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future?

Revenues are the dollar amount of sales plus any other income received from sources such as interest, dividends, and rent.

What kind of a financial statement shows revenues, gross sales, and net sales?

What are ratios of special interest to the company's creditors that measure the company's ability to pay short-term debts as they come due?

An example of an intangible asset is accounts receivable because the company does not see or feel it until it is paid in full.

Which of the following is the best example of a current asset for a clinical psychologist?

A summary of the money flowing into and out of a company during a certain period is called the statement of cash flows.

How would the building, the parking lot, and the land owned by a superstore be listed on the store's balance sheet?

In the accounting field, CMA stands for which of the following?

What do inventory turnover ratios measure?

The balance sheet summarizes a company's financial position over a period of time; for instance, three months or a year.

Auditors are correctly portrayed as bean-counters.

Which of the following is NOT one of the three groups that the statement of cash flows divides the company's cash flow into?

Net sales is best described by which of the following?

What is another name for the ratio of net profit to net sales?

Which of the following involves calculating and interpreting financial ratios taken from the company's financial statements in order to assess its condition and performance?

Net profit is the amount a company earns after paying to produce or buy its products but before deducting operating expenses.

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Understanding Money and the Canadian Financial System

Finance

Filters