Quiz 13 Chapter 18 "Financial Statements"
Which of the following takes place when a company sets its standards by comparing data from other companies and similar industries to its own?
Benchmarking
Which of the following is NOT a characteristic of accounting?
Accounting is an end in itself
From this week's video, a balance sheet shows a company's profit and loss statement over a specific period of time.
False
The main purpose of managerial accounting is:
To be used within an organization
Which of the following is NOT a purpose of financial accounting?
To organize information for management
Suppose you are analyzing financial statements of a client. You should take into account which of the following factors?
All of these answers: *Industry trends *Changes in price levels *Economic conditions
Which formula represents a current ratio?
Current Assets/Current Liabilities
Assume that the total debt for Bounded Inc. was 9000 instead of 6500. How would this affect the implications of the debt ratio?
Risk would increase
Analyzing which financial statement will tell you about the financial health of a firm?
The balance sheet
Assume you are doing a liquidity test of a client before lending the client firm money. You realize that the quick ratio is .45. This indicates that:
The firm may not be able to meet current obligations
From this week's video, an income statement shows a company's profit and loss statement over a specified period of time.
True
From this week's video, the 3 basic financial statements are balance sheet, statement of cash flows, and income statement.
True