Quiz 1 and 2

Question 1

For which step (1,2,3,4, or 5) in the Operating cycle is there a difference between manufacturers and retailers?

Answer 1

1

Question 2

After the Third STEP in the Operating Cycle the firm has?

Answer 2

Cash

Question 3

Before the 1st step in the Operating Cycle, the firm has?

Answer 3

Cash

Question 4

After the Second STEP in the Operating Cycle the firm has an?

Answer 4

Account Receivable

Question 5

The Operating cycle starts with?

Answer 5

Cash

Question 6

In the lecture, when there is a Purchase or Manufacture in the operating cycle, what happens to cash?

Answer 6

Decreases

Question 7

In Purchase or Manufacture in the operating cycle, what happens to cash?

Answer 7

Decreases

Question 8

After the 2nd step in the Operating Cycle, the firm has?

Answer 8

Receivable

Question 9

The third step in the Operating Cycle is called

Answer 9

Collection

Question 10

The second step in the Operating Cycle is called?

Answer 10

Sale

Question 11

After the first STEP in the Operating Cycle, the company has?

Answer 11

Inventory

Question 12

The marketing department is involved in which step (1,2,3,4 or 5) in the Operating cycle?

Answer 12

2

Question 13

During a Sale in the operating cycle, what happens to cash?

Answer 13

Stays the same

Question 14

During Collection in the operating cycle, what happens to cash?

Answer 14

Increases

Question 15

After the 3rd step in the Operating Cycle, the firm has?

Answer 15

Cash

Question 16

In Cash Flow reporting: A/R is measured at

Answer 16

0

Question 17

Financial Accounting is done for whom?

Actual Investors
Actual Investors 
Potential Investors
Actual Creditors
Potential Creditors
the IRSt
Internal Managers

Answer 17

1,2,3,4

Question 18

In Cash Flow Reporting: what is the income at the point of sale?

Answer 18

0

Question 19

Managerial Accounting is done for whom?

Actual Investors
Potential Investors
Actual Creditors
Potential Creditors
the IRS
Internal Managers

Answer 19

6

Question 20

In the lecture what is the Sacrifice value of the Pen?

Answer 20

$5

Question 21

Which of the following has the single greatest impact on stock prices?

Answer 21

Net Income

Question 22

In the lecture what is the Sacrifice value of the A/R?

Answer 22

$5

Question 23

Of the following, the most important objective for financial accounting is to provide information useful for:

Answer 23

Predicting Cash Flows

Question 24

In the lecture what is the Benefit value of the Pen?

Answer 24

$8

Question 25

Duality of Asset Valuation is primarily as issue in

Answer 25

Measuring Assets

Question 26

Usually we measure Inventory at

Answer 26

Sacrifice Value

Question 27

Tax Accounting is done for whom?

Actual Investors
Potential Investors
Actual Creditors
Potential Creditors
the IRS
Internal Managers

Answer 27

5

Question 28

In Cash Flow Reporting: what is the income at the time of collection of the A/R?

Answer 28

$8

Question 29

When Managers report they

Answer 29

Sometimes like to look good, and sometimes like to look bad

Question 30

Allocation is primarily as issue in

Answer 30

Measuring Income

Question 31

Income in the operating cycle equals

Answer 31

Benefit value minus Sacrifice value

Question 32

Usually we pick up Income at:

Answer 32

Point of sale

Question 33

For most businesses what is the critical event?

Answer 33

Sale of inventory

Question 34

What is usually a better predictor of future cash flow to the firm?

Answer 34

Past income

Question 35

In Cash Flow Reporting, what is the income at the acquisition of Inventory

Answer 35

Loss of $5

Question 36

Usually we measure A/R at

Answer 36

Benefit Value

Question 37

The Trueblood Criterion is used by

Answer 37

Accountants

Question 38

In Cash Flow reporting, inventory is measured at

Answer 38

$0