G- Bus Q 10 – Flashcards
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The ratio obtained by dividing net income after taxes by net sales is the
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return on sales ratio
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The information provided by managerial accounting is of most benefit to a firm's
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managers
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?The number of times a company sells and replaces its merchandise inventory in one year is known as
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invetroy turn over
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?The total dollar amount of all goods and services sold during the accounting period is the
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gross sales
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?All of the following, except _____, can provide answers to a variety of questions about a firm's ability to do business and stay in business, its profitability, and its value as an investment.
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?bank statements
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Selling expenses are considered to be a type of
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current liability.
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Which type of manager would be most concerned with information about the products offered by competitors?
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Marketing
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General Motors decides to close one of its manufacturing plants in the Midwest. GM sells the facility to a new foreign automobile manufacturer. The money GM receives from this sale would belong in the ____ section of the statement of cash flows.
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investing
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A prepaid expense would be classified as
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an asset
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Assets = liabilities + owners' equity is the equation for information reported on the
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balance sheet
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Resources that a firm owns are called
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assets
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Which of the following best describes the organization of a statement of cash flows?
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Operating, investing, and financing cash flows
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Sarbanes-Oxley Act
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A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate. law passed in 2002 that imposes responsibility on companies and their management to protect investors by safeguarding the accuracy and integrity of financial information that is used internally and released externally.
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Numerical or verbal descriptions that usually result from measurements of some sort are known as
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Data
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Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's
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gross profit
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Jessica has worked for one week but her employer only pays its employees every two weeks. The amount of money her company owes her is classified as
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salaries payable
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If you wanted to evaluate the financial condition of Target Stores, a leading discount chain, you would most likely compare its financial ratios to ____ ratios.
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A) Walmart'
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When Betty Tran prepared a personal income statement, the remainder or residual value is called
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cash surplus
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The ratio that averages about 2.0 for all industries is the
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current ratio
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The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.
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a management information system
