Intro to Business- Ch 14 Accounting and Financial Information

Which of the following is an example of an intangible assets for a manufacturer of padlocks?

A patent on titanium lock mechanism

On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called ___ expenses.

General and administrative

In accounting, every transaction must be recorded as two entries. This system is called:

A double-entry bookkeeping

Which of the following is the BEST example of a current asset for a university bookstore?

Credit card charges by book buyers >> Current assets usually are expected to be turned into cash within one year.

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.

How has the Sarbanes-Oxley Act affected accountants?

It has eliminated many no auditing tasks they use to provide for their customers.

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 >> The debt-to-equity ratio measure the relationship between the amount of debt financing and the amount of equity financing.

A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):

Note payable

Bruce Wayne's Cleaning Service has purchased a new pressure washer for $18,000. Bruce Wayne's 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:

Depreciation >> Depreciation is the process of distributing the original cost of a long-term asset over the years of its useful life.

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

Accounts receivable

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

Intangible assets

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?

Operating >> Advertising is a selling expense, which is an operating expense.

The ___ summarized an organization's financial status at the end of an accounting period.

Balance sheet

Refer to the video: Data Analytics and Accounting >> Data analytics can be defined as ___.

Using financial and non-financial data to help companies make better decisions

Assume the net profit for a 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:

$5 >> The ratio of net profit to the number of shares of common stock outstanding is called the EPS.

Eneke Alish has a six-month loan for $7,500 that she used to refurbish the fishing boat she uses to earn her living. This loan is an example of:

A current liability >> Notes payable are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short-term debts as they come due are called ___ ratios.

liquidity

___ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

Accrued expenses

Haley Optics manufactures lenses used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. It depreciated assets during the year by $20,000. The earnings before interest and taxes was calculated to be $120,000. On an income statement, an accountant would classify the remaining $160,000 as:

Cost of goods sold

Yumiko's Kite Shack operates on the beaches of Malibu during the tourist season. Last year, Yumiko sold $25,000 worth of kites. Her cost of goods was $7,000, and she paid herself a salary of $20,000. On an income statement, Yumiko's business would have a(n):

Net loss >> After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the net loss when it is a negative number.