Quiz Ch 13 BA 1301

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:

net sales

Intranets, VPNS, and extranets are forms of LANs.

false

Liquidity ratios measure:

short-term financial stability

The Internet is essentially a worldwide wide area network (WAN).

true

_____ is arrived at by subtracting current liabilities from current assets.

Net working capital

An enterprise portal is an internal Web site that provides proprietary corporate information to a defined user group.

True

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment?

cans of yellow paint for refurbishing equipment

A computer program that copies itself into other software and can spread to other computer systems is called a software infestation.

false

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

Amounts owed to the firm by customers who bought goods and services on credit are called:

accounts receivable

A(n) _____ is a summary of the money flowing into and out of a firm.

statement of cash flows

The sporting goods store sold $75,000 worth of merchandise in June. The retailer gave no discounts and had no returns. Which of the following statements accurately describes the information seen on the company's income statement?

Gross sales equal net sales.

In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n):

account payable

The Art Institute, a school for training artists to be financially self-sufficient, has a debt-to-equity ratio of 120 percent. This means the school has:

more debt than equity