Accounting Exam 1

An increase in the amount of shares of a company's common stock will affect its

Earnings per share of common stock

True or False? The lean thinking model focuses on reducing defects to as close to zero as possible.

False

True or False? The price-earnings ratio is determined by dividing the price of a product by its profit margin.

False

Which of the following persons would occupy a line position in a department store?

Sales Manager + Manager, Furniture Department B. Only I and II

If a company has a high current ratio but a low acid-test ratio, one can conclude that

The firm has a large investment in inventory

Horizontal analysis of financial statements is accomplished through

Trend Percentages

True or False? Companies that choose an operational excellence strategy are in essence saying to their customers, "Choose us because we can deliver products and services faster, more conveniently, and at a lower price than our competitors.

True