Accounting II chapters 13, 14 & 15

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Examples of complementary products that may be used to create an effective product mix include which of the following?

1. Car wash at a gas station 2. Snacks at a movie 3. Nonfood necessities at a grocery store

NOT a cash flow from investing activities

1. Cash paid for wages and salaries to employees 2. Cash paid to repay loans

In the statement of cash flow, cash flows from financing activities include which of the following?

1. Recedes form short term borrowing 2. Cash received from the sale of stock to stockholders 3. Cash paid to purchase treasury stock 4. Cash paid in dividends to stockholders

What are the purposes of a cash flow statement?

1. The companys ability to generate positive cash flows in the future 2. To asses the company's need for external financing 3. To asses the company's ability to meet obligations and pay dividends

Cash budgets

1. They may show expected cash flows great detail 2. They are a forecast of future cash receipts and payments 3. They may provide useful information for evaluating performance

Purposes of developing in effective product mix

1. To increase total sales 2. To increase gross margins

All of the following are considered cash equivalents except

1. Treasury bills 2. Money market funds 3. Commercial papers 4. STOCKS

The ratio that indicates how quickly a company converts its accounts receivable into cash is called

Accounts receivable turnover rate

Reconciling a company's net income to its net cash from operating activities includes

An increase in accounts payable An increase in short term notes payable Depreciation expense

Describe the price earnings ratio

Based on an assessment of the future Reflects a company's liquidity

Items that are considered the same as cash in the preparation of the statement of cash flows are called

Cash equivalents

The financial statement that focuses entirely on a single asset in the balance sheet is the statement of...

Cash flows

Which section of the statement of cash flows is most directly related to net income?

Cash flows from operating activities

Cash flows from operating activities computed by the direct and indirect method

Cash flows from operations is the same amount by either method The direct method provides more information about the amount of specific cash inflows and outflows

To determine cash paid for merchandise, which two adjustments are required?

Change in inventory and change in accounts payable

Financial statements that present multi year information in side by side columns are called

Comparative financial statements

Assets that are relatively liquid and expected to become cash in the future are called

Current assets

A widely used measure of liquidity that includes all current assets is referred to as

Current ratio

The final section or item you would expect to find in a classified income statement is

Earnings per share

True or false: a cash budget is not a useful tool for evaluating performance

False

The cash paid out to repay debt is classified as ______________ activity in the statement of cash flows

Financing

cash flows from operating activities

Interest and dividends received Collection from customers Proceeds from the settlement of litigation

considered in calculating working capital

Inventories Wages payable

The ratio that indicates how many times during the year the company is able to sell quantity of goods equal to its average inventory is called

Inventory turnover ratio

A company that receives the repayment of loans it has made to other companies should classify the cash received as cash flows from ____________ activities

Investing

Operating Activities

It relates to day to cash inflows and outflows such as sales, purchases, salaries. Collections from customers for sales of goods and services

The ability of a company to meet its continuing obligations is referred to as

Liquidity

NOT a cash flow from operating activities

Payments of dividends to stockholders

A policy of charging higher prices in periods of higher demand is called

Peak pricing

Peak pricing

Prevent systems from becoming so overloaded that they cannot function May make goods and services available to customers who could not afford them

The balance sheet ratio that measures liquidity by excluding inventory as an asset is called

Quick ratio

A company with strong free cash flow means that

The company will have less need for external financing The company's operations are a reliable source of financing for the future

Primary factors evaluating the quality of working capital include

The length of time required to convert current assets into cash The nature of the current assets

A company both borrowed and repaid funds. How will these be presented in the financing activities section of the statement of cash flows?

The repayment will be presented as a negative cash flow The borrowing will be presented as a positive cash flow

Changes in a company's revenue, expenses, operating income, and net income is referred to as

Trends in earnings

True or false: Trends in cash flow may affect a company's credit rating?

True

Investing Activities

cash inflows and outflows that concern investing activities. Investments are expected to produce a benefit to the company. Cash proceeds from selling investments Collecting loans

Financing Activities

includes cash transactions resulting from the external financing of a business Borrowing money Repayment of amounts borrowed Pay,emits to owners, dividends

% change

new-old/old


संबंधित स्टडी सेट्स

Drugs and Health Ch.8 Alcohol: Behavioral Effects

View Set

Part 2: Economic Factors and Business Information

View Set

Chapter 15 Physical and Cognitive Development in Late Adulthood

View Set

Faith Question Answer on jesuits

View Set

1.0 Coast Guard Authority and Jurisdiction

View Set

Introduction to Unix/Linux 801 - Test 1 Review

View Set

HESI MED SURG - Cardiovascular, Hematologic, and lymphatic

View Set