1. A(n) _______ worksheet projects the companys expected assets, liabilities, and equity.
Answer
Correct Answer:
Balance sheet
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2. To speed up magnetic hard drive performance, ____ is often used.
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Correct Answer:
Disk caching
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3. Costs that increase as a firm acquires additional current assets are called _____ costs.
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Correct Answer:
Carrying
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4. Corporations usually employ _____ to help sell their securities in the primary market.
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Correct Answer:
Investment banking firms
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5. When a note receivable is honored, cash is debited for the note's ________ value.
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Correct Answer:
Maturity
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6. ________ stay constant over a wide range of volume.
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Correct Answer:
Costs per unit
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7. In the cost allocation process, an allocation base ________.
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Correct Answer:
Should be the cost driver of the costs in the particular activity pool
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8. Costs that do not vary according to production volume are called _____.
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Correct Answer:
Fixed costs
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9. An average quality lawn captures ______ times the carbon output of a typical gasoline-powered mower
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Correct Answer:
4
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10. Economists summarize a country's transactions with other countries with a(n) _____ account.
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Correct Answer:
Balance of payments
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11. If ________, then the contribution margin ratio will increase.
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Correct Answer:
100%.
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12. Business reports that list only totals, with no individual item details, are called ____.
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Correct Answer:
Summary reports
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13. Molding and sanding each unit of product would most likely be classified as a ________ cost.
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Correct Answer:
Unit-level
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14. Contribution margin is calculated by deducting ________ from sales revenue.
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Correct Answer:
Total variable costs
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15. An unfavorable flexible budget variance in variable costs suggests a(n) ________.
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Correct Answer:
Increase in variable cost per unit.
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16. An adjusting entry is completed ________.
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Correct Answer:
At the end of the accounting period
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17. A reference value involves comparing the costs and benefits of __________.
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Correct Answer:
Substitute items
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18. A company should ________ when making a shortminusterm special decision.
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Correct Answer:
Separate variable from fixed.
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19. If a company retires preferred stock, ________.
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Correct Answer:
Total stockholders' equity will decrease.
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20. A company selling a bond is ________ money.
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Correct Answer:
Borrowing
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21. A ____________ endorsement would be used if a person is presenting a check in order to obtain cash.
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Correct Answer:
Blank
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22. A bond's price volatility _________ at _________ rate as maturity increases.
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Correct Answer:
Increases; a decreasing
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23. When the total fixed costs increases, the contribution margin per unit ________.
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Correct Answer:
Remains the same
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24. When the sales price per unit decreases, the contribution margin per unit ________.
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Correct Answer:
Decreases
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25. Downloading a song from itunes is an example of a(n) ________ service.
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Correct Answer:
Convenience
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26. A summary book for recording all transactions and account balances is referred to as a/an ______.
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Correct Answer:
General ledger
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27. The goal of good cash-flow management is to ______.
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Correct Answer:
Have enough cash on hand when it is needed
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28. “Profit = Revenue − Expenses” represents the activity described in the ______.
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Correct Answer:
Income statement
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29. ______ refers to what the business owner has invested in the business.
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Correct Answer:
Equity
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30. Which of the following ratios measures the number of times the firm can cover its current liabilities with its current assets?
Answer
Correct Answer:
Current ratio
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31. Why are financial statements important?
Answer
Correct Answer:
In the event of an audit you can defend your decisions
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32. Single-entry accounting systems record the flow of income and expenses in a running log and allow the small business owner to produce ______.
Answer
Correct Answer:
Monthly statements
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33. The ratios that measure the speed with which various accounts are converted into sales or cash and that are used to measure the efficiency of asset usage are known as ______.
Answer
Correct Answer:
Activity ratios
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34. Financial statements that project what a firm’s financial condition will be in the future are known as ______.
Answer
Correct Answer:
Pro forma financial statements
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35. The financial record that summarizes the income and expenses of the business over time is the ______.
Answer
Correct Answer:
Income statement
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36. Calculations that compare the important financial aspects of a business are called ______.
Answer
Correct Answer:
Financial ratios
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37. High average collection periods usually indicate ______.
Answer
Correct Answer:
Many uncollected accounts receivable
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38. Which of the following financial actions should be made on a weekly basis by a small business manager?
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Correct Answer:
Note especially slow-paying accounts
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39. Each business day, 12 small businesses in the United States declare bankruptcy primarily for which of the following?
Answer
Correct Answer:
Poor cash-flow management
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40. The measure of how long it takes a firm to convert a credit sale into a usable form is known as which of the following?
Answer
Correct Answer:
Average collection period
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41. Trend analysis is a comparison of a single firm’s present performance with its own past performance preferably for more than _____.
Answer
Correct Answer:
Two year
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42. Trend analysis is a comparison of a single firm’s present performance with its own _____ preferably for more than two years.
Answer
Correct Answer:
Past Performance
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43. _____ is an asset utilization ratio that measures how efficiently the firm uses all of its assets to generate sales.
Answer
Correct Answer:
Total asset turnover
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44. Times Interest earned is a leverage ratio that calculates the firm’s ability to meet its interest requirements.
Answer
Correct Answer:
True
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45. Statement of cash flow is a financial statement that shows the cash _____ of a business.
Answer
Correct Answer:
Both a and b
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46. _____ is a financial statement that shows the cash inflows and outflows of a business.
Answer
Correct Answer:
Cash flow statement
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47. SIngle Entry accounting is an accounting system in which the flow of _____ is recorded in a running log.
Answer
Correct Answer:
Both a and b
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48. SIngle entry accounting is basically a checkbook.
Answer
Correct Answer:
True
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49. _____ is a profitability ratio that measures the return the firm earned on its owner’s investment in the firm.
Answer
Correct Answer:
Return on Equity
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50. _____ is a profitability ratio that indicates the firm’s effectiveness in generating profits from its available assets.
Answer
Correct Answer:
Both a and b
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51. _____ is a financial ratio that measures a firm’s ability to meet its current obligations with the most liquid of its current assets.
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Correct Answer:
Quick ratio
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52. _____ is financial statements that project what a firm’s financial condition will be in the future.
Answer
Correct Answer:
Pro Forma Financial Statements
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53. _____ is a financial ratio that is used to measure the ability of a company to turn sales into profits and to earn profits on assets and owner’s equity committed.
Answer
Correct Answer:
Profitability Ratios
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54. Owner's Equity is the amount of money the owner of a business would receive if some of the assets were sold and all liabilities were paid.
Answer
Correct Answer:
False
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55. Net profit margin is a profitability ratio that measures the percentage of each sales dollar that remains as profit after all _____.
Answer
Correct Answer:
Both a and b
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56. _____ is a list of accounts receivable showing each customer, the amount that customer owes, and the amount that is past due.
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Correct Answer:
Micro-Aging Schedule
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57. _____ is a list of accounts receivable by age category.
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Correct Answer:
Macro-Aging Schedule
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58. _____ is a financial ratio used to measure a firm’s ability to meet its short-term obligations to creditors as they come due.
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Correct Answer:
Liquidity ratios
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59. Liabilities is a debt owed by a business to another _____.
Answer
Correct Answer:
Both a and b
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60. _____ is a financial ratio that measures the extent to which a firm uses debt as a source of financing and its ability to service that debt.
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Correct Answer:
Leverage ratios
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61. Journal is a _____ of all financial transactions of a business.
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Correct Answer:
Chronological record
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62. Inventory Turnover is an asset utilization ratio that measures the liquidity of the firm’s inventory—how quickly goods are _____.
Answer
Correct Answer:
Both a and b
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63. Industry Average Analysis is a comparison of a firm’s _____ to the industry averages.
Answer
Correct Answer:
Financial ratio
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64. Income statement is a financial statement that shows the revenue and expenses of a firm, allowing you to calculate the _____ produced in a specific period of time.
Answer
Correct Answer:
Both a and b
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65. Generally Accepted Accounting Principles (GAAP) is a standard established so that all businesses produce _____ financial statements.
Answer
Correct Answer:
Comparable
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66. General Ledger is a record of all financial transactions divided into accounts and usually compiled at the end of each _____ .
Answer
Correct Answer:
Month
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67. Fixed asset turnover is an asset utilization ratio that measures how _____ a firm is using its assets to generate sales.
Answer
Correct Answer:
Efficiently
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68. _____ is a calculation that compares important financial aspects of a business.
Answer
Correct Answer:
Financial ratio
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69. Double-Entry accounting is an accounting system in which every business transaction is recorded in an _____ so that the system will balance.
Answer
Correct Answer:
All of these
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70. _____ is a leverage ratio that measures the proportion of a firm’s total assets that is acquired with borrowed funds.
Answer
Correct Answer:
Debt ratio
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71. _____ is a financial ratio that measures the number of times a firm can cover its current liabilities with its current assets.
Answer
Correct Answer:
Current ratio
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72. A financial statement that includes a percentage breakdown of each item.
Answer
Correct Answer:
Common size financial statement
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73. _____ is the period of time from when money is spent on raw mate-rials until it is collected from the sale of a finished good.
Answer
Correct Answer:
Cash-To-Cash Cycle
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74. The difference between the actual amount of cash a company brings in and the actual amount of cash a company disburses in a given time period is known as Cash flow.
Answer
Correct Answer:
True
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75. Cash flow is the sum of net income plus any noncash expenses, such as:
Answer
Correct Answer:
Both a and b
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76. Cash budgets is a plan for _____ uses and sources of cash.
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Correct Answer:
Short-term
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77. Cash-Basis method is a method of accounting in which _____ are recorded at the time they are paid, rather than when they are incurred.
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Correct Answer:
Both a and b
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78. Select the correct options for credit sales in Average collection period:
Answer
Correct Answer:
Internal store credit
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79. Asset Utilization Ratios are the financial ratios that measure the speed with which various asset accounts are converted into _____ ?
Answer
Correct Answer:
Both a and b
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80. Assets are any resources that?
Answer
Correct Answer:
Both a and c
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81. Aging Schedules is a listing of a Company’s firm receivable according to the length of time they are outstanding.
Answer
Correct Answer:
False
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82. Accrual basis method is a method of accounting in which _____ are recorded at the time they are incurred rather than when they are paid.
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Correct Answer:
Both a and b
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83. Which one of these is an example of Accounting?
Answer
Correct Answer:
All of theses
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