chapter 14
a current liability
Ennis Worth has a six-month loan for $7,500 that he used to refurbish the fishing boat he uses to earn his living. This loan is an example of:
the sale of land adjacent to the manufacturer's administrative office building
On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:
equity
The ratio of net profit to total owners' equity is called return on:
current
The ratio of total current assets to current liabilities is called the _____ ratio.
operating
What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?
net profit
After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.
How has the Sarbanes-Oxley Act affected accountants?
How has the Sarbanes-Oxley Act affected accountants?
Marketable securities
_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.
operating
Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?
Public accountants
_____ are independent accountants who serve organizations and individuals on a fee basis.
$5
Assume the net profit for manufacturer of mountain bikes was $1,000,000 last year. The firm paid out $40,000 in dividends and has 200,000 shares of common stock outstanding. Its earnings per share (EPS) was:
depreciation
Sullins Cleaning Service has purchased a new pressure washer for $18,000. Sullins Cleaning is allowed to charge a portion of the company's cost during its useful life against the profits it generates. This practice is called:
gross profit
The difference between net sales and cost of goods sold is:
2 times
A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?
private accountants
Accountants employed within organizations are called:
income statement
A(n) _____ is a summary of what a company has earned and spent over a given period.
statement of cash flows
A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.
general and administrative
On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called _____ expenses.
the money borrowed to purchase the furniture in the tutorial area and the interest owed on that debt
On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include:
general and administrative
On an income statement, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.
determine how efficiently a company is being managed
Profitability ratios are used to:
net sales
Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May. Sales discounts amounted to $18,000. There were no returns. The difference, $102,000, is Nevada Silver's:
pushing for major changes in GAAP
The Financial Accounting Standards Board (FASB) is currently:
Balance Sheet
The _____ summarizes an organization's financial status at the end of an accounting period.
earnings per share
The ratio of net profit to the number of shares of common stock outstanding is called the:
