1.The contribution margin ratio will show how much ________ a company will make on each dollar of sales.

a.profit

b.liquidity

c.revenue

d.loss

2.If a company sells its average quantity of goods in inventory every 14.6 days, its inventory turn ratio is:

1. 16.2
2. 25
3. 50
4. 17.9

3.Which two categories from the KSY Manufacturing Company's Balance Sheet will be used to calculate its Current Ratio?

1. Liabilities; Owner's Equity
2. Liabilities; Assets
3. Assets; Retained Earnings
4. Retained Earnings; Liabilities

4.If the sales revenue is $150,000 and the margin of safety is $30,000, then the break-even sales will be:

1. $120,000
2. $150,000
3. $180,000
4. $250,000

5.Sales revenue of $110,000 will achieve breakeven when the contribution margin is $30,000 and the fixed costs are:

1. $25,000
2. $80,000
3. $110,000
4. $50,000

6.The statement of owner's equity provides users of the financial statements with a reconciliation of the company's ________ and ________ equity accounts.

1. checks, balances
2. profits, losses
3. debit, credit
4. beginning, ending

7.Given a contribution margin of $20, if 10,000 units are produced at a cost of $400,000 what is the sales revenue in USD?

1. $60
2. $600,000
3. $300,000
4. $200,000

8.Unethical practices in financial reporting have cost:

1. accurate pricing.
2. accountants their professional reputation.
3. there are no consequences.
4. the price of oil.

9.Information needed by external entities in order to evaluate business performance is provided by:

1. Managerial Accountants
2. Financial Accountants
3. Attorneys
4. Forensic Accountants

10.The heart of all financial accounting is the accounting equation, which is represented as:

1. owner's equity = assets + liabilities
2. assets = liabilities owner's equity
3. liabilities = assets + owner's equity
4. assets = liabilities + owner's equity

11.The income statement shows which types of accounts?

1. assets
2. liabilities
3. credits
4. income

12.A business producing packaged food products would have the following variable costs:

1. Rent
2. Packaging equipment
3. Computers
4. Ingredients

(just use A, B, C, or D as an answer choice and not 1, 2, 3, 4)