Which group of ratios measures how effectively the firm is using its assets?

Which group of ratios measures how effectively the firm is using its assets? a. Liquidity ratios. b. Debt ratios. c. Efficiency ratios d. Profitability...

Which group of ratios relates profits to sales and investment?

Which group of ratios relates profits to sales and investment? a. Liquidity ratios. b. Debt ratios. c. Efficiency ratios. d. Profitability ratios. Answer:...

Which group of ratios shows the extent to which the firm is financed with debt?

Which group of ratios shows the extent to which the firm is financed with debt? a. Liquidity ratios. b. Debt ratios. c. Efficiency ratios. d. Profitability...

Which ratio measures percentage of assets being financed through borrowings

Which ratio measures percentage of assets being financed through borrowings a. Fixed Assets Turnover Ratio b. Total Assets Turnover Ratio c. Return...

Which ratio measures efficiency of total assets for the company as a whole or for a division of the firm?

Which ratio measures efficiency of total assets for the company as a whole or for a division of the firm? a. Fixed Assets Turnover Ratio b. Total...

Which ratio measures how effectively a firm is using its plant and machinery to generate sales?

Which ratio measures how effectively a firm is using its plant and machinery to generate sales? a. Fixed Assets Turnover Ratio b. Total Assets Turnover...

Which ratio measures efficiency of long-term capital investment:

Which ratio measures efficiency of long-term capital investment: a. Fixed Assets Turnover Ratio b. Total Assets Turnover Ratio c. Return on fixed...

Which statement is true:

Which statement is true: a. A low ratio indicates that inventory does not remain in warehouses or on shelves, but rather turns over rapidly into sales. b....

Which ratio measures how well the firm is managing/using its assets?

Which ratio measures how well the firm is managing/using its assets? a. Liquidity ratios b. Efficiency ratios c. Profitability ratios d. Market prospect...

Financial statement analysis is designed to show the relative strengths and weaknesses of a company as compared to:

Financial statement analysis is designed to show the relative strengths and weaknesses of a company as compared to: a. Other firms in the industry b....

From management's viewpoint, financial statement analysis is useful to:

From management's viewpoint, financial statement analysis is useful to: a. help plan for the future b. to show the relative strengths and weaknesses...

When interest expenses and taxes are subtracted from EBIT, the result is net income available to:

When interest expenses and taxes are subtracted from EBIT, the result is net income available to: a. Creditors b. Shareholders c. Employees d. Government Answer:...

Financial statement analysis helps identify:

Financial statement analysis helps identify: a. a firm's strengths b. a firm's weaknesses c. management can take advantage of a firm's strengths...

The financial statements of publicly traded firms would be more reliable when:

The financial statements of publicly traded firms would be more reliable when: a. Audited by board of directors. b. Audited by independent public...

Standards Board (FASB), the financial statements of a firm should provide sufficient information that is useful to:

Standards Board (FASB), the financial statements of a firm should provide sufficient information that is useful to: a. Investors b. Creditors c. Directors d....

Financial statements are summaries of the:

Financial statements are summaries of the: a. operating, payment, and investment activities of a firm b. operating, financing, and liquidity of a...

Profitability Ratios - Return on Equity (ROE):

Profitability Ratios - Return on Equity (ROE): a. Measures the relationship between profits and the investment of fixed assets b. Measures the relationship...

The faster a company can sell it, the faster they have cash. This statement is true with:

The faster a company can sell it, the faster they have cash. This statement is true with: a. the shorter Inventory Turnover b. the shorter total...

Which of the following would be considered a use of cash?

Which of the following would be considered a use of cash?  a. depreciation b. acquired an equipment c. Issue bonds d. an increase in wages payable Answer:...

Which of the following is true? The choice of LIFO versus FIFO will:

Which of the following is true? The choice of LIFO versus FIFO will:  a. not affect net income or cash flow from operations b. not affect net...

Which of the following is true?

Which of the following is true?  a. Depreciation: is recorded so that net book value represents fair value of assets b. Depreciation: does not...

What impact does depreciation have on the cash account?

What impact does depreciation have on the cash account? a. Depreciation only impacts the cash account if inflation has occurred. b. Depreciation results...

What type of accounts are accounts receivable and accounts payable?

What type of accounts are accounts receivable and accounts payable?  a. Operating accounts. b. Financing accounts. c. Investing accounts. d....

Which of the following items would be classified as financing activities below?

Which of the following items would be classified as financing activities below? a. Loans to others, returns from loans to others, acquisition of...

Which statement is true:

Which statement is true: a. Financial analysis is the use of financial statements to analyze a company's financial position and performance. b. Financial...

In indirect method, the net income figure from the income statement is used to calculate the amount of net cash flow from operating activities because:

In indirect method, the net income figure from the income statement is used to calculate the amount of net cash flow from operating activities because: a....

Which statement is true:

Which statement is true: a. Liquidity refers to the ability of a company to meets its long-term (and current) obligations. b. Profitability refers...

Major noncurrent assets include:

Major noncurrent assets include: a. Property b. All of these c. Equipment d. Investments Answer: ...

It is an indicator of a company's ability to meet financial obligations

It is an indicator of a company's ability to meet financial obligations a. Liquidity b. Solvency c. Profitability d. Efficiency Answer: ...

Major current assets include:

Major current assets include: a. cash and cash equivalents b. marketable securities c. all of these d. derivative financial instruments Answer:...

Which statement is true:

Which statement is true: a. Gains are cash inflows that arise from the company's ongoing business activities. b. Gains are cash outflows that arise...

Which statement is true:

Which statement is true: a. Economic income and accounting income are always the same. b. The matching principle in accounting prescribes that costs...

Which of the following measures of accounting income is typically reported in an income statement?

Which of the following measures of accounting income is typically reported in an income statement?  a. Net income b. Comprehensive income c....

As a general rule, revenue is normally recognized when it is:

As a general rule, revenue is normally recognized when it is:  a. received b. realizable and received c. realizable and earned d. realizable Answer:...

The classification of marketable equity securities as trading or available-for-sale is determined by:

The classification of marketable equity securities as trading or available-for-sale is determined by:  a. management's intent regarding the disposition...

Trading Marketable Securities:

Trading Marketable Securities:  a. are considered current assets. b. are considered current liability c. are considered non-current liability d....

Which asset is very liquid that can be converted into cash quickly:

Which asset is very liquid that can be converted into cash quickly: a. Trading Marketable Securities b. Inventory c. Prepaid expense d. All of these Answer:...

Which item is listed on the owner equity of the balance sheet?

Which item is listed on the owner equity of the balance sheet? a. Paid-in capital b. Common stock c. Retained earning d. All of these Answer:...

Which activity is an example of operating activities?

Which activity is an example of operating activities? a. Selling goods b. Paying employees c. Advertising d. All of these Answer:...

Which statement is true:

Which statement is true: a. Total liabilities to total assets ratio <50 percent indicates that a firm is relying more on borrowed money than owners'...

Which ratio measures the extent to which a firm relies on debt financing:

Which ratio measures the extent to which a firm relies on debt financing: a. Leverage ratios b. Liquidity ratios c. Profitability ratios d. Efficiency...

Which ratio indicates the number of times merchandise inventory moves through a business?

Which ratio indicates the number of times merchandise inventory moves through a business? a. Inventory turnover ratio b. Asset turnover ratio c. Day...

Which activity focus on selling goods and services, but they also consider expenses as important elements of sound financial management.

Which activity focus on selling goods and services, but they also consider expenses as important elements of sound financial management. a. Financing...

Which activity help to provide valuable assets required to run a business?

Which activity help to provide valuable assets required to run a business? a. Financing activity b. Operating activity c. Investing activity d. None...

Which activity help to provide necessary funds to start a business and expand it after it begins operating?

Which activity help to provide necessary funds to start a business and expand it after it begins operating?  a. Financing activity b. Operating...

Which ratio is a measure of how well the firm uses its assets to generate income:

Which ratio is a measure of how well the firm uses its assets to generate income: a. Return on assets b. Return on common equity c. Earnings per...

The concepts of profitability are given by:

The concepts of profitability are given by: a. Return on assets b. Return on common equity c. Earnings per common share d. All of these Answer:...

Which of the following items would rarely be classified as a current asset?

Which of the following items would rarely be classified as a current asset?  a. none of these. b. Marketable Securities. c. Work-in-progress. d....

Operating leases is listed on:

Operating leases is listed on: a. off-balance sheet financing b. balance sheet c. income statement d. statement of cash flow Answer: ...

Which of the following is an example of off-balance sheet financing?

Which of the following is an example of off-balance sheet financing?  a. Operating leases b. Capital leases c. Issuance of bonds d. Issuance...

Which of the following would be found listed as a liability on a company's balance sheet?

Which of the following would be found listed as a liability on a company's balance sheet?  a. Capital lease obligations b. Bonds payable c. Taxes...

The intrinsic value approach ignores two types of costs:

The intrinsic value approach ignores two types of costs:  A. Interest cost and opportunity cost B. Opportunity cost and exercise cost C. Interest...

When comparing expensing or capitalizing (with straight-line depreciation) software, return on assets ?

When comparing expensing or capitalizing (with straight-line depreciation) software, return on assets ? A. will decrease over time using capitalization. B....

Which of the following overall accounting concepts has a number of exceptions under GAAP?

Which of the following overall accounting concepts has a number of exceptions under GAAP?  A. Historical cost B. Transaction basis C. Conservatism D....

Which of the following is not an extraordinary item?

Which of the following is not an extraordinary item?  I. Loss on abandonment of property II. Gain on disposal of a business segment III. Effect...

Which of the following statements is incorrect? Employee stock options

Which of the following statements is incorrect? Employee stock options  A. are not recorded as an expense when granted if they are at or out-of-the...

Which of the following statements is true? Under GAAP, comprehensive income:

Which of the following statements is true? Under GAAP, comprehensive income:  A. may be reported in addition to net income. B. must be reported...

Which of the following items is not included in the calculation of net income but is included in the calculation of comprehensive income?

Which of the following items is not included in the calculation of net income but is included in the calculation of comprehensive income?  A....

Which of the following would be considered an extraordinary item?

Which of the following would be considered an extraordinary item?  I. Write-down of receivables II. Gains on disposal of a business segment III....

Which of the following is true with respect to extraordinary items?

Which of the following is true with respect to extraordinary items?  I. Extraordinary items are recorded net of tax in income statement. II....

A company changes its depreciation method from an accelerated system to straight line. Which of the following would normally be true?

A company changes its depreciation method from an accelerated system to straight line. Which of the following would normally be true?  I. The...

If a company estimates that its expected return on pension plan assets will increase to 9.5% from 9.0%, this would be considered:

If a company estimates that its expected return on pension plan assets will increase to 9.5% from 9.0%, this would be considered:  A. an extraordinary...

If a company changes the useful life of its assets from 10 years to 12 years, this will be recorded as:

If a company changes the useful life of its assets from 10 years to 12 years, this will be recorded as:  A. a non-recurring gain. B. an extraordinary...

Which of the following will cause the reported effective tax rate to differ from the federal statutory tax rate?

Which of the following will cause the reported effective tax rate to differ from the federal statutory tax rate?  I. Foreign tax rates that are...

Which of the following statements are correct?

Which of the following statements are correct?  I. Tax loss carrybacks result in deferred tax assets. II. Tax loss carryforwards result in deferred...

Exoil recorded an expense and corresponding liability to recognize potential losses relating to an oil spill in 2006 of $10 million. Its net income for the year was $200 million. It was not able to take a deduction for tax purposes until later years when it actually paid cash out in relation to this event. In 2006, with respect to this, Exoil would have:

Exoil recorded an expense and corresponding liability to recognize potential losses relating to an oil spill in 2006 of $10 million. Its net income...

The capitalization of interest cost during construction:

The capitalization of interest cost during construction:  A. increases future net income. B. decreases future depreciation expense. C. increases...

Two growing firms are identical except that one firm capitalizes whereas the other firm expenses costs for long-lived resources over time. For these two firms, which of the following statements is generally true?

Two growing firms are identical except that one firm capitalizes whereas the other firm expenses costs for long-lived resources over time. For these...

Compared with companies that expense costs, firms that capitalize costs can be expected to report:

Compared with companies that expense costs, firms that capitalize costs can be expected to report:  A. higher asset levels and lower equity...

If a company that normally expenses advertising costs was to capitalize and amortize these costs over 3 years instead:

If a company that normally expenses advertising costs was to capitalize and amortize these costs over 3 years instead:  A. after the third year...

Differences in taxable income and pretax accounting income that will not be offset by corresponding differences or "turn around" in future periods are called:

Differences in taxable income and pretax accounting income that will not be offset by corresponding differences or "turn around" in future periods are...

Which of the following statements concerning deferred taxes is correct?

Which of the following statements concerning deferred taxes is correct?  A. Deferred taxes will not be found in asset section of the balance...

Which of the following are correct?

Which of the following are correct?  I. If a company uses straight-line depreciation for financial reporting purposes, it is very likely they have...

According to FASB, initial franchise fees should be recognized as income when:

According to FASB, initial franchise fees should be recognized as income when:  A. the franchiser has substantially performed or satisfied...

Which of the following measures of accounting income is typically reported in an income statement?

Which of the following measures of accounting income is typically reported in an income statement?  A. Net income B. Comprehensive income C....

As a general rule, revenue is normally recognized when it is:

As a general rule, revenue is normally recognized when it is:  A. measurable and earned. B. measurable and received. C. realizable and earned. D....

Which of the following is not a reason for economic income and accounting income to differ?

Which of the following is not a reason for economic income and accounting income to differ?  A. Transaction basis B. The monetary assumption C....

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?  A. Work in process will decrease. B....

Which of the following situations always results in underapplied overhead?

Which of the following situations always results in underapplied overhead?  A. actual overhead is greater than applied overhead B. actual overhead...

If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end of any period means that:

If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end...

In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period:

In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period:  A....

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:  A. Predetermined overhead rate divided by...

Which of the following accounts is debited when indirect labor is recorded?

Which of the following accounts is debited when indirect labor is recorded?  A. Work in Process B. Salaries and Wages Expense C. Salaries and...

In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:

In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:  A. a debit to the Work in Process...

In a job-order costing system, direct labor costs usually are recorded initially with a debit to:

In a job-order costing system, direct labor costs usually are recorded initially with a debit to:  A. Manufacturing Overhead. B. Finished Goods...

In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:

In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:  A. Raw Materials. B. Work in Process. C....

In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:

In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:  A. a credit to the Manufacturing...

Choice of allocation base should be made based on:

Choice of allocation base should be made based on:  A. the relative size of the base. B. the base's relation to direct labor. C. the base's activity. D....

Which of the following documents is used to specify the type and quantity of materials drawn from the storeroom, and identifies the job to which the costs of the materials are to be charged?

Which of the following documents is used to specify the type and quantity of materials drawn from the storeroom, and identifies the job to which the...

In job-order costing, all of the following statements are correct with respect to labor time and cost except:

In job-order costing, all of the following statements are correct with respect to labor time and cost except:  A. time tickets are kept by employees...

For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system?

For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process...

Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?

Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?  A. fast food restaurant B....

The most common accounting treatment of underapplied manufacturing overhead is to transfer it to the Manufacturing Overhead control account.

The most common accounting treatment of underapplied manufacturing overhead is to transfer it to the Manufacturing Overhead control account.  a....

The sum of all amounts transferred from the Work in Process account and into the Finished Goods account represents the Cost of Goods Manufactured for the period.

The sum of all amounts transferred from the Work in Process account and into the Finished Goods account represents the Cost of Goods Manufactured for...

A credit balance in the Manufacturing Overhead account at the end of the year means that overhead was underapplied.

A credit balance in the Manufacturing Overhead account at the end of the year means that overhead was underapplied.  a. True b. False Answer:...

Actual manufacturing overhead costs are traced to specific jobs.

Actual manufacturing overhead costs are traced to specific jobs.  a. True b. False Answer:...

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the amount of actual direct labor-hours incurred on the job.

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the amount of actual...

When completed goods are sold, the transaction is recorded as a debit to Cost of Goods Sold and a credit to Work in Process.

When completed goods are sold, the transaction is recorded as a debit to Cost of Goods Sold and a credit to Work in Process.  a. True b. False Answer:...

Predetermined overhead rates are based on actual cost and activity data.

Predetermined overhead rates are based on actual cost and activity data.  a. True b. False Answer:...

Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.

Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.  a. True b. False Answer:...

In order to improve the accuracy of unit costs, most companies recompute the predetermined overhead rate each month.

In order to improve the accuracy of unit costs, most companies recompute the predetermined overhead rate each month.  a. True b. False Answer:...

The labor time ticket contains the details of how much time an employee takes on each task throughout the day.

The labor time ticket contains the details of how much time an employee takes on each task throughout the day.  a. True b. False Answer:...

The three cost categories appearing on a job cost sheet are: selling expense, manufacturing expense, and administrative expense.

The three cost categories appearing on a job cost sheet are: selling expense, manufacturing expense, and administrative expense.  a. True b....

Job-order costing is usually not used in service organizations such as hospitals and law firms.

Job-order costing is usually not used in service organizations such as hospitals and law firms. a. True b. False Answer:...

Job-order costing is used in those situations where units of a product are homogeneous, such as in the manufacture of sugar.

Job-order costing is used in those situations where units of a product are homogeneous, such as in the manufacture of sugar.  a. True b. False Answer:...

In a job-order costing system, costs are traced to departments and then allocated to units of product using an average process.

In a job-order costing system, costs are traced to departments and then allocated to units of product using an average process.  a. True b. False Answer:...

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period...

A company's net income is $100,000, and its weighted-average shares outstanding are 20,000. During the year, the company issues 5,000 ESOs at an exercise price of $20.

A company's net income is $100,000, and its weighted-average shares outstanding are 20,000. During the year, the company issues 5,000 ESOs at an exercise...

Tecktroniks Company reported in its annual report software refinement expenses of $12M, 15M and 18M for fiscal years 2005, 2006 and 2007, respectively. At the end of fiscal 2007, it had total assets of 140M. Net income was 20M for fiscal 2007, and it had a marginal tax rate of 35%.

Tecktroniks Company reported in its annual report software refinement expenses of $12M, 15M and 18M for fiscal years 2005, 2006 and 2007, respectively....

If software refinement had been capitalized each year and amortized over a three-year period beginning in the year the cost was incurred, total assets at the end of fiscal 2007 would have been:

If software refinement had been capitalized each year and amortized over a three-year period beginning in the year the cost was incurred, total assets...

An increase in the balance in Accounts Payable. This indicates which part will be affected:

An increase in the balance in Accounts Payable. This indicates which part will be affected: a. Operating b. Investing c. Financing d. Supplemental Answer:...

An increase in the balance in a retailer's Merchandise Inventory. This indicates which part will be affected:

An increase in the balance in a retailer's Merchandise Inventory. This indicates which part will be affected: a. Operating b. Investing c. Financing d....

The proceeds from the sale of the automobile. This indicates which part will be affected:

The proceeds from the sale of the automobile. This indicates which part will be affected: a. Operating b. Investing c. Financing d. Supplemental Answer:...

Gain on the Sale of Automobile formerly used in the business; This indicates which part will be affected:

Gain on the Sale of Automobile formerly used in the business; This indicates which part will be affected: a. Operating b. Investing c. Financing d....

Declaration and payment of dividends on company's stock. This indicates which part will be affected:

Declaration and payment of dividends on company's stock. This indicates which part will be affected: a. Operating b. Investing c. Financing d. Supplemental Answer:...

The Loss on the Sale of Equipment. This indicates which part will be affected:

The Loss on the Sale of Equipment. This indicates which part will be affected: a. Operating b. Investing c. Financing d. Supplemental Answer:...

Proceeds from the sale of equipment used in the business. This indicates which part would be effected:

Proceeds from the sale of equipment used in the business. This indicates which part would be effected: a. Operating b. Investing c. Financing d....

Which group of ratios measures a firm's ability to meet short-term obligations?

Which group of ratios measures a firm's ability to meet short-term obligations? a. Liquidity ratios. b. Debt ratios. c. Times interest earned d. Profitability...

Which group of ratios relates the financial charges of a firm to its ability to service them?

Which group of ratios relates the financial charges of a firm to its ability to service them? a. Liquidity ratios. b. Debt ratios. c. Times interest...

Which of the following is an example of a cash outflow?

Which of the following is an example of a cash outflow? a. Cash from collections on account b. Cash for the principle of a loan c. Salaries and wages...

Which of the following is true regarding to cash flows from operating activities of the statement of cash flows (using the indirect method)?

Which of the following is true regarding to cash flows from operating activities of the statement of cash flows (using the indirect method)? a. Depreciation...

What sources are used to gather information to prepare the statement of cash flows?

What sources are used to gather information to prepare the statement of cash flows? a. Comparative balance sheets b. Current income statement c....

Which of the following would be considered a noncash activity?

Which of the following would be considered a noncash activity? a. Purchase of a long-term asset using a long term note payable b. Exchange of a building...

Which of the following is an example of a cash inflow?

Which of the following is an example of a cash inflow? a. Cash from collections on account b. Cash paid to lenders for interest c. Cash paid for...

Which of the following is an example of a cash inflow?

Which of the following is an example of a cash inflow? a. Cash from sale b. Cash paid to lenders for interest c. Cash paid for salaries and wages d....

Which of the following is NOT a cash outflow for the firm?

Which of the following is NOT a cash outflow for the firm? a. depreciation. b. dividends. c. interest payments. d. taxes. Answer:...

According to the Financial Accounting Standards Board (FASB), which of the following is a cash flow from a "financing" activity?

According to the Financial Accounting Standards Board (FASB), which of the following is a cash flow from a "financing" activity? a. cash outflow to...

Which of the following would be considered a cash-flow item from an "investing" activity?

Which of the following would be considered a cash-flow item from an "investing" activity? a. cash inflow from interest income. b. cash inflow from...

Purchases divided by accounts payable provides information about:

Purchases divided by accounts payable provides information about:  a. capital structure b. management of working capital c. gross profit margin d....

A stock dividend declared in the period should be reported as which of the following?

A stock dividend declared in the period should be reported as which of the following? a. A cash outflow from investing activities. b. A cash outflow...

Cost of goods sold divided by inventory provides information about:

Cost of goods sold divided by inventory provides information about: a. profitability b. capital structure c. management of working capital d. gross...

Return on operating assets is a measure of which of the following?

Return on operating assets is a measure of which of the following?  a. Profitability b. Efficiency c. Solvency d. Liquidity Answer: ...

Which of the following is the best measure of operating efficiency?

Which of the following is the best measure of operating efficiency?  a. Return on net operating assets b. Return on equity c. Return on sales d....

Which of the following would explain an observed decrease in return on equity, all else equal?

Which of the following would explain an observed decrease in return on equity, all else equal?  a. Decrease in tax rate b. Increase in interest...

Hardie Corporation sold equipment for $1,000. This transaction will be reported on the cash flow statement as:

Hardie Corporation sold equipment for $1,000. This transaction will be reported on the cash flow statement as: a. an operating activity. b. an investing...

In a statement of cash flows (indirect method), a decrease in inventories should be reported as:

In a statement of cash flows (indirect method), a decrease in inventories should be reported as: a. A deduction from net income in determining cash...

Which of the following could cause return on net operating assets to increase, all things other equal?

Which of the following could cause return on net operating assets to increase, all things other equal?  a. A decrease in interest rate on debt b....

Which of the following could explain a decrease in net operating asset turnover for a company?

Which of the following could explain a decrease in net operating asset turnover for a company?  a. Switching from straight line to accelerated...

Which of the following statements is correct?

Which of the following statements is correct?  a. Net operating profit margin divided by net operating asset turnover equals return on net operating...

Which of the following ratios best measures the profitability of a company?

Which of the following ratios best measures the profitability of a company?  a. Return on equity b. Gross margin c. Current ratio d. Net operating...