Which ratio can provide an indication of the salability of the company's products? A) Accounts receivable turnover B) Current ratio C) Inventory turnover D) Gross profit margin Which of the following is one measure of liquidity? A) Debt-to-equity ratio B) Times-interest-earned ratio C) Quick ratio D) None of the above Return on assets is computed as: A) Net income/Average stockholders' equity B). Net income/Average total assets C) Sales times Asset turnover D) Gross Margin times Net Income Benowitz company's net income was $150,000 for 2015, $162,500 for 2016, and $167,520 for 2017. Assume trend percentages for net income over the three-year period are computed, with 2015 serving as the base year. The trend percentage for 2017's net income is: A) 100.00% B) 103.09% C) 111.68% D) 73.62% To qualify as a cash equivalent, an investment must be: A) Easily convertible into a known cash amount B) Three months or more from maturity C) Over $500,000 in amount D) Al of the above With reference to the reporting of net cash flow from operating activities, which method do most companies use and why A) Indirect method because it provides better information for decision making B) Direct method because it is based on the accrual of accounting C) Direct method because it requires a supplemental i method section D) Indirect method because it is less expensive to prepare Management Accountants provide information that is: A) Timely B) Relevant C) Useful for making decisions D) Easily accessible to management E) All of the above Managerial Accounting provides information which is primarily useful for A) Helping banks know whether to loan money to a company B) Setting a company's stock price on the stock exchanges C) Determining how much a company owes to the IRS in taxes D) Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company Which ratio can provide an indication of the salability of the company's products? A) Accounts receivable turnover B) Current ratio C) Inventory turnover D) Gross profit margin Which of the following is one measure of liquidity? A) Debt-to-equity ratio B) Times-interest-earned ratio C) Quick ratio D) None of the above Return on assets is computed as: A) Net income/Average stockholders' equity B). Net income/Average total assets C) Sales times Asset turnover D) Gross Margin times Net Income Benowitz company's net income was $150,000 for 2015, $162,500 for 2016, and $167,520 for 2017. Assume trend percentages for net income over the three-year period are computed, with 2015 serving as the base year. The trend percentage for 2017's net income is: A) 100.00% B) 103.09% C) 111.68% D) 73.62% To qualify as a cash equivalent, an investment must be: A) Easily convertible into a known cash amount B) Three months or more from maturity C) Over $500,000 in amount D) Al of the above With reference to the reporting of net cash flow from operating activities, which method do most companies use and why A) Indirect method because it provides better information for decision making B) Direct method because it is based on the accrual of accounting C) Direct method because it requires a supplemental i method section D) Indirect method because it is less expensive to prepare Management Accountants provide information that is: A) Timely B) Relevant C) Useful for making decisions D) Easily accessible to management E) All of the above Managerial Accounting provides information which is primarily useful for A) Helping banks know whether to loan money to a company B) Setting a company's stock price on the stock exchanges C) Determining how much a company owes to the IRS in taxes D) Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company
