FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Understanding Accounting and Financial Information

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 121

Multiple Choice

Review LaterAdd Note

Review Later

Net profit refers to

A) the result of deducting liabilities from the assets of the firm.
B) the result of subtracting cost of goods sold from revenues.
C) the result of deducting depreciation expense from revenues.
D) the net earnings after the deduction of all expenses, including tax expense.

E) A) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 122

Multiple Choice

Review LaterAdd Note

Review Later

A balance sheet lists assets in order of their ________.

A) dollar value, from smallest to largest
B) date of acquisition, with the most recently acquired assets listed first
C) liquidity, with the most liquid assets listed first
D) income generating ability

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 123

True/False

Review LaterAdd Note

The books where accounting data are first entered are called ledgers.

The firm's most valuable assets are listed at the top of its balance sheet.

Coolest Closet, a chain of retail clothing stores, wants to assure investors and other outsiders that its financial statements are accurate. One way to do so would be to hire a public accounting firm to

In the course of their jobs, bookkeepers

The key financial statements are the balance sheet, the income statement, and the statement of cash flows.

Sally prepares monthly financial statements for her client, Dent's Auto Body. Now, though, she must summarize the data in the accounting ledgers to determine if the figures are correct and balanced. Sally will prepare a statement of cash flows in order to complete this step of the cycle.

Good decisions are based on good information. Organizations need accounting-to provide good financial information.

FIFO and LIFO are two common methods used to compute the depreciation of tangible assets.

A hospital emergency room serves several patients from a ten-car pile-up on the local interstate. Most of the victims require bandages, antibiotics, foot and arm casts, topical ointments, and pain pills. These items are part of the costs of goods sold for the hospital emergency room.

_______ refers to the value that stockholders or owners have in a company.

Debts that are due in one year or less are classified on the balance sheet as

Portable Pet Care, Inc., has recorded the following on its income statement for the period ending December 31, 2019: The return on sales = 34%. This return is outstanding and there is no need to compare this return to competitors in the veterinary services industry.

The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.

The value of resources the firm owns, minus the amount of money the firm owes to others =

Brand names such as Coca-Cola and McDonald's are examples of intangible assets.

The work of a certified management accountant is intended to enable people outside of the organization to make investment decisions.

During a period of rising prices, using FIFO (first-in, first-out) inventory valuation method will result in ________ net income figures than would LIFO (last-in, first-out) .

Referring to an accounting system, inputs refers to events and transactions that occur within the business, while outputs refers to the journal entries and ledger categorization that occurs after the events and transactions are recorded.