Which of the following financial statement analyses is most useful in determining whether the various expenses of a given entity are higher or lower than industry averages?
The following transactions occurred during a company’s first year of operations:
Which of the items above caused a change in the amount of working capital?
The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm’s maturing obligations is the policy that finances:
The main reason that a firm would strive to reduce the number of days sales outstanding is to increase:
An entity had cash receipts from sales of $175,000 during Year 2. At the end of Year 1, the company had $40,000 of deferred revenue, all of which was earned in Year 2. The company’s sales revenue for Year 2 would be:
An organization sells a product for which demand is certain and carrying costs are high. Management wants to minimize inventory costs. The organization should:
The management of ABC Corporation is analyzing the financial statements of XYZ Corporation because ABC is strongly considering purchasing a block of XYZ ordinary shares that would give ABC significant influence over XYZ. Which financial statement should ABC primarily use to assess the amounts, timing, and certainty of future cash flows of XYZ Company?
The times-interest-earned ratio is primarily an indication of:
To comply with the matching principle, the cost of labor services of an employee who participates in the manufacturing of a product normally should be charged to the income statement in the period in which the:
The relationship of the total debt to the total equity of a corporation is a measure of:
In December Year 1, catalogs were printed for use in a special promotion in January Year 2. The catalogs were delivered by the printer on December 13, Year 1, with an invoice for $70,000 attached. The payment was made in January Year 2. The $70,000 should be reported as a deferred cost at the December 31, Year 1, reporting date because of the:
When the U.S. dollar is expected to rise in value against foreign currencies, a U.S. company with foreign currency denominated receivables and payables should:
If the U.S. dollar price of the euro rises, which of the following will occur?
An entity has a high fixed assets turnover ratio. What conclusion can a financial analyst draw from this?
Net working capital is the difference between:
Which of the following changes in accounting policies resulting from a significant change in the expected pattern of economic benefit will increase profit?
Which group of ratios would be useful in evaluating the effectiveness of working capital management?
Which of these inventory management techniques is the simplest?
The publisher of a popular magazine offers a special discounted price for a 3-year subscription. At the end of the reporting period, the amount that has already been collected but pertains to future periods is best referred to as:
An airline should recognize revenue from airline tickets in the period when:
Companies that adopt just-in-time purchasing systems often experience:
If a call option is out-of-the-money, the:
An aging of accounts receivable measures the:
A newly acquired plant asset is to be depreciated over its useful life. The rationale for this process is the:
On February 1, Year 1, a computer software firm agrees to program a software package for $100,000, with the payment made on March 1, Year 1. The software is accepted by the client on June 1, Year 2. How much Year 1 revenue should be recognized?
An entity has a 50% gross margin, general and administrative expenses of $50, interest expense of $20, and net income of $20 for the year just ended. Ignoring the effects of income tax, the level of sales revenue for the year just ended was:
The purpose of the economic order quantity model is to: