FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Understanding Accounting and Financial Information

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Essay

Review LaterAdd Note

Review Later

Explain the difference between current,capital,and intangible assets.Give two examples of each of these different types of assets.

Correct Answer

verified

Current assets are items that can be con...

View Answer

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Current liabilities are payments due in one year or less.

Correct Answer

verified

True

Question 3

True/False

Review LaterAdd Note

Gross margin represents the amount a firm earns by buying (or making)and selling merchandise.

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

The LIFO method of inventory valuation assumes that the newest items in inventory are sold first.

Liabilities are what the firm owes to others.

A firm's financial statements represent a health report regarding the condition of the firm.

Jim works in the accounting department at the Brunswick Sunflower Corporation,where it is his job to record all transactions into journals.After completing this task,the next step in the accounting process is to:

Tickets sold for the Rolling Stones concert are considered to be the net income for the concert promoter.

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

The net income of a firm can change significantly depending upon the specific accounting procedures that are used for amortization and inventory valuation.

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

(p.507.)If the economy began experiencing a prolonged period of deflation in which the costs of most goods were actually falling,many firms would find that the LIFO method of inventory valuation would result in higher reported profits.

Over the past month,Monica noted that she disbursed $6,347 in payments for operations in her travel agency and received $6,189 in cash receipts for services rendered.She had no cash receipts or disbursements from investments or financing activities.Thus,Monica had a:

Carlisle Communications is preparing its cash flow statement.Among other things,this statement will show:

All of the following are steps included in the accounting cycle Except:

Leverage ratios are concerned with the extent to which a firm relies on borrowed funds in its operations.

Keith will be graduating from Acadia University this year.He has accumulated $18,000 dollars in student loans during his four years at college.An accountant would classify the loans as:

As Hector was packing to return to Simon Fraser University after his summer vacation,he realized that he owned many valuable things such as a laptop computer,stereo system,and DVD player.An accountant would list all of these as Hector's:

Debts that are due in one year or less are classified as: