1. the assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is:
2. the business being separate and distinct from the owners is an integral part of the:
to the extent that money does not remain stable, it loses its usefulness as the standard for measuring financial transactions.
5、accountants normally recognize revenue when cash is received.
gaap is the genarally accepted accounting principles in uk.
the balance sheet reports:
tangible assets on the balance sheet should include:
the most important asset a merchandise firm has is inventory.
current assets are listed on the balance sheet in order of liquidity.
preferred stock usually has voting rights.
1. gross profit is the difference between:
2. which of the following will not affect retained earnings?
sale of asset should be classified in loss or gain in the income statement.
in practice, the income statement is frequently considered to be the least important financial statement.
an income statement is a summary of revenues and expenses and gains and losses, ending with net income for a particular period of time.
which of the following is not a purpose of the statement of cash flows?
which of the following is not a typical cash flow under investing activities?
the firm borrowed loan from a bank is finance activities in the cash flow statement.
depreciation expense reduces operating income but does not require the use of cash.
the statement of cash flows should be reviewed for several time periods in order to determine the major sources of cash and the major uses of cash.
typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability?
which of the following current assets will not generate cash in the future?
he current ratio comprises current assets and current liabilities.
the cash ratio is usually a good indication of the liquidity of the firm.
the ability of an entity to maintain its short-term, debt-paying ability is important to all users of financial statements.
the debt ratio indicates:
which of the following statements best compares long-term borrowing capacity ratios?
the debt ratio is usually aller than 1.
as with the debt ratio and the debt/equity ratio, from a long-term, debt-paying ability view, the lower the debt to tangible net worth ratio, the better.
when yzing a firm's long-term, debt-paying ability, we only want to determine the firm's ability to pay the principal.
which of the following types of businesses would normally have the shortest operating cycle?
which of the following does not bear on the quality of receivables?
we use accounts receivable turnover in days to indicate the quality of the receivables turnover.
using the direct write-off method, the bad debt expense that is recorded as a specific customer's account is determined to be noncollectible.
if days' sales in receivables are materially longer than the credit terms, this indicates a collection problem.
.net profit margin measures return on:
the dupont method return on assets uses two component ratios. what are they?
earnings per share and p/e ratio are usually use by investors in the society.
changes in the cost of goods sold can have a substantial impact on gross profit margin.
in order to compute gross profit margin, the income statement must be in single-step format.
gross profit is the difference between:
which of the following is not a purpose of the statement of cash flows?
typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability?
which of the following current assets will not generate cash in the future?
prepayments should be the money paid in advance and not returned.
which of the following does not bear on the quality of receivables?
total asset turnover measures the ability of a firm to:
which of the following is not the problem in balance sheet presentation?
the dupont method return on assets uses two component ratios. what are they?
which of the following is not a type of operating asset?
a retailing firm has which type of inventory?
which of the following ratios will usually have the lowest percent?
which of the following is not a type of operating asset?
typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability?
which of the following would not be classified as a current asset?
profitability is the ability of the firm to generate earnings.
the income statement will not fairly represent the cash from operations.
current assets are listed on the balance sheet in order of liquidity.
in practice, the income statement is frequently considered to be the least important financial statement.
preferred stock usually has voting rights.
the statement of cash flows should be reviewed for several time periods in order to determine the major sources of cash and the major uses of cash.
as with the debt ratio and the debt/equity ratio, from a long-term, debt-paying ability view, the lower the debt to tangible net worth ratio, the better.
when yzing a firm's long-term, debt-paying ability, we only want to determine the firm's ability to pay the principal.
in order to compute gross profit margin, the income statement must be in single-step format.