Chapter 15 Quiz Flashcards
A prepaid expense would be classified as
a. an asset. b. an expense. c. an unearned revenue. d. a liability. e. cost of goods sold
a. an asset.
All of the following are classified as fixed assets except
a. buildings. b. factory equipment. c. property. d. computers held for resale. e. a company car.
d. computers held for resale.
Trademarks and goodwill are both
a. sources of revenue. b. fixed assets. c. liabilities. d. current assets. e. intangible assets
e. intangible assets
The debts of a business that will be paid in one year or less are called its
a. prepaid expenses. b. current liabilities. c. long-term liabilities. d. expenses. e. current assets
b. current liabilities.
Salaries payable, accounts payable, and taxes payable are examples of
a. current assets. b. owners' equity. c. long-term liabilities. d. expenses. e. current liabilities.
e. current liabilities.
A price reduction to customers who pay their bills promptly is called
a. an operating expense. b. a sales allowance. c. cost of goods sold. d. a sales return. e. a sales discount.
e. a sales discount.
Selling expenses are considered to be a type of
a. manufacturing expense. b. current liability. c. prepaid expense. d. operating expense. e. fixed liability.
d. operating expense.
What are the three major components included in a statement of cash flows?
a. Financing, buying, selling b. Processing, operating, receiving c. Investing, financing, and expensing d. Operating, investing, financing e. Operating, selling, and investing
d. Operating, investing, financing
If you are taking a common sense approach to evaluating a firm’s accounting information, which of the following would not be something that you would hope to see?
a. Financial statements audited by an outside source b. Paying great attention to current profit and not worrying about the future c. Strategies to reduce operating expenses d. Remembering that a balance sheet is only a snapshot in time e. How the company manages its cash flow
b. Paying great attention to current profit and not worrying about the future
The number of times a company sells and replaces its merchandise inventory in one year is known as
a. net purchases. b. LIFO inventory. c. inventory turnover. d. FIFO inventory.
c. inventory turnover.
Most corporations include important elements of their financial statements ___ in their annual reports to permit readers to compare financial data.
a. for the year in question b. for recent years c. for the life of the company d. for other companies
b. for recent years
The total dollar amount of all goods and services sold during the accounting period is the
a. gross sales. b. revenues. c. net sales. d. income.
a. gross sales.
On a personal income statement, ____ and ____ are the normal designations for profit and loss for an individual.
a. gain; loss b. surplus; deficit c. income overage; income deficit d. cash surplus; cash deficit
d. cash surplus; cash deficit
Numerical or verbal descriptions that usually result from measurements of some sort are known as
a. data. b. assets. c. statistics. d. software. e. information.
a. data.
The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.
a. a manager awareness program b. a computer information program c. entrepreneurial information software d. a desktop information system e. a management information system
e. a management information system
