Quiz 1 and 2 Flashcards
For which step (1,2,3,4, or 5) in the Operating cycle is there a difference between manufacturers and retailers?
1
After the Third STEP in the Operating Cycle the firm has?
Cash
Before the 1st step in the Operating Cycle, the firm has?
Cash
After the Second STEP in the Operating Cycle the firm has an?
Account Receivable
The Operating cycle starts with?
Cash
In the lecture, when there is a Purchase or Manufacture in the operating cycle, what happens to cash?
Decreases
In Purchase or Manufacture in the operating cycle, what happens to cash?
Decreases
After the 2nd step in the Operating Cycle, the firm has?
Receivable
The third step in the Operating Cycle is called
Collection
The second step in the Operating Cycle is called?
Sale
After the first STEP in the Operating Cycle, the company has?
Inventory
The marketing department is involved in which step (1,2,3,4 or 5) in the Operating cycle?
2
During a Sale in the operating cycle, what happens to cash?
Stays the same
During Collection in the operating cycle, what happens to cash?
Increases
After the 3rd step in the Operating Cycle, the firm has?
Cash
In Cash Flow reporting: A/R is measured at
0
Financial Accounting is done for whom?
Actual Investors Actual Investors Potential Investors Actual Creditors Potential Creditors the IRSt Internal Managers
1,2,3,4
In Cash Flow Reporting: what is the income at the point of sale?
0
Managerial Accounting is done for whom?
Actual Investors Potential Investors Actual Creditors Potential Creditors the IRS Internal Managers
6
In the lecture what is the Sacrifice value of the Pen?
$5
Which of the following has the single greatest impact on stock prices?
Net Income
In the lecture what is the Sacrifice value of the A/R?
$5
Of the following, the most important objective for financial accounting is to provide information useful for:
Predicting Cash Flows
In the lecture what is the Benefit value of the Pen?
$8
Duality of Asset Valuation is primarily as issue in
Measuring Assets
Usually we measure Inventory at
Sacrifice Value
Tax Accounting is done for whom?
Actual Investors Potential Investors Actual Creditors Potential Creditors the IRS Internal Managers
5
In Cash Flow Reporting: what is the income at the time of collection of the A/R?
$8
When Managers report they
Sometimes like to look good, and sometimes like to look bad
Allocation is primarily as issue in
Measuring Income
Income in the operating cycle equals
Benefit value minus Sacrifice value
Usually we pick up Income at:
Point of sale
For most businesses what is the critical event?
Sale of inventory
What is usually a better predictor of future cash flow to the firm?
Past income
In Cash Flow Reporting, what is the income at the acquisition of Inventory
Loss of $5
Usually we measure A/R at
Benefit Value
The Trueblood Criterion is used by
Accountants
In Cash Flow reporting, inventory is measured at
$0
