BUSN Final Exam part 3
On a statement of cash flows for a pizza restaurant, the cash flows from investment activities section would include:
the brick oven stove used to cook the pizzas
A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If it's cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?
2 times
______ is the system used to record a firm's financial transactions in a routine and clerical process.
bookkeeping
Haley Optics manufacturers lens used in cameras, binoculars, and scientific equipment. It had sales of $30,000 during the last quarter. It's gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:
cost of goods sold
in manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:
cost of goods sold
______ are debts that are to be paid within twelve months.
current liabilities
____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.
financial accounting; managerial accounting
On an income statements, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.
general and administrative
U.S. Carbuetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:
gross profit
the difference between net sales and cost of goods sold is:
gross profit
the Securities Investor Protection Corporation (SIPC)
insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure.
By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the ______ ratio is calculated.
inventory turnover
How has the Sarbanes-Oxley Act affected accountants?
it has eliminated many nonauditing tasks they use to provide for their customers.
For which of the following assets would a wholesale company use depreciation?
it's warehouses
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
After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the ____ when it is a negative number.
net loss
after all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the ______ when it is a positive number.
net profit
____ is arrived at by subtracting current liabilities from current assets.
net working capital
which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?
net working capital
Another term for owners' equity is:
net worth
A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):
note receivable
Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within:
one year
fixed assets are property and buildings that a firm expects to use for more than:
one year
Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?
operating
The FASB:
private organizations that is responsible for establishing financial accounting standards in the US
which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?
retained earnings
A(n) ____ is a summary of the money flowing into and out of a firm.
statements of cash flows
Accounting involves the _____ of the financial activities for firms.
summarizing
On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:
the sale of land adjacent to the manufacturer's administrative office building.
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
Which of the following statements about the accounting profession is true?
All of the above statement about the accounting profession are true.
Which of the following is an example of an intangible asset for a manufacturer of padlocks?
a patent on titanium lock mechanism
Amounts owed to the firm by customers who bought goods and services in credit are called:
accounts receivable
______ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.
debt
The ______ ratio measures the relationship between the amount of debt financing and the amount of debt financing and the amount of equity financing.
debt-to-equity
the acceptable turnover ration is:
different for each industry
The ratio of net profit to total owners' equity is called return on:
equity
_____ are independent accountants who serve organizations and individuals on a fee basis.
public accountants
Accounting provides a framework for looking at:
all of the above
The Financial Accounting Standards Board (FASB) is currently:
pushing for major changes in GAAP