ACC 202 Ch.1 Pre-homework
rate of return on assets
( net income + interest expense) / average total assets = rate of return on assets
rate of return on equity
( net income - preferred dividends) / average common equity = rate of return on equity
to earn CMA certification a candidate must have a ______. The CMA exam can be taken before finishing the degree
Baccalaureate
the certification launched in 2012 jointly by the american institute of public accountants and the chartered institute of management accountants is called
Chartered Global Management
average receivables
average net accounts receivable / on day's sales = average receivables
the institute of management accountants(IMA) issues the _______ certification
certified management accountant (CMA)
failing to read the specification of the software package before purchasing it violates the ____ standard
competence
skipping continuing education sessions could violate the requirement to maintain professional ________. if your comany paid for you to attend the conference, skipping the sessions also violated the _______ standard
competence, integrity
providing earning information to you sister before it is publicly announced violates the _____ standard
confidentiality
formula for inventory turnover
cost of goods sold / average inventory = inventory turnover
failing to provide job description information to management because you fear it may be used to cut a position in department violates the _____ standard
credibility
cost of juniors clothing
direct
junior department sales clerk
direct
the certification offered by IMA focuses on ____ and ____ topics
finance and accounting
focus is on the past
financial accounting
information is verified by external auditors
financial accounting
it is governed by GAAP or the IFRS
financial accounting
primary users are external
financial accounting
reporting is based mainly on the company as a whole
financial accounting
reports are usually prepared quarterly and annually
financial accounting
the primary characteristic of information are that it must be reliable and objective
financial accounting
gross profit percentage
gross profit / net sales = gross profit percentage
cost of hangers used to display clothing in the store
indirect
cost of radio advertising
indirect
electricity for the building
indirect
stealing from your employer is a violation of the ______ standard
integrity
______ for a company such as best buy, includes all of the costs necessary to purchase products and get them on to the shelves
inventory (merch)
focus is on the future
managerial accounting
it is not governed by legal requirements
managerial accounting
main characteristic of information is that it must be relevant
managerial accounting
primary users are internal
managerial accounting
reports are prepared as needed
managerial accounting
reports tend to be prepared for the parts of the organization rather than the whole organization
managerial accounting
has three types of inventory on the balance sheet
manufacturing companies
forever 21, target, and kohl's are all examples of
merchandising companies
rate of return on sales
net income / net sales = rate of return on net sales
operating income percentage
operating income / net sales = operating income percentage
johnson & johnson a personal care products manufacturer converts _____ into finished products
raw materials inventory
a law office, an advertising agency, and a hospital are examples of ___
service companies
typically do not have an inventory
service companies
most for profit organizations can be described as being in one of three categories
service companies, manufacturing companies, merchandising companies
the monthly professional magazine published by the institute of management accountants is called ____
strategic finance
_____ buy products in bulk producers, marks them up, and resell to retailers
wholesalers
composed of goods partially through the manufacturing process (not finished)
work in progress inventory