ScienceEconomicsChapter 2 quiz example #33534
Please enter something

Chapter 2 quiz example #33534

Yoel Rodriguez avatar Yoel Rodriguez
23 July 2023
4.5 (45 reviews)
20 test answers

Unlock all answers in this set

Unlock answers (16)
question
A current asset is
answer
expected to be converted to cash or used in the business within a relatively short period of time
question
Trademarks would appear in which balance sheet section?
answer
Intangible assets
question
Equipment is classified on the balance sheet as
answer
property, plant, and equipment
question
On a classified balance sheet, companies usually list current assets
answer
in the order in which they are expected to be converted into cash
question
Use the following data to determine the total dollar amount of assets to be classified as current assets.
answer
$68500 + $96500 + $145500 + $83500 = $394000 (Cash + Acc. rec + Inv. + Prep. ins.)
question
Use the following data to determine the total amount of working capital.
answer
($74500 + $96500 + $143500 + $88500) - ($138000 + $12400) = $252600 (Cash + Acc. rec. + Inv. + Prep. ins.) - (Acc. Pay. + Sal./Wag. pay.)
question
A measure of profitability is the
answer
earnings per share.
question
For 2017 Vaughn Manufacturing reported net income of $38500; net sales $393500; and average share outstanding 15000. There were no preferred dividends. What was the 2017 earnings per share?
answer
$2.57
question
The current ratio is
answer
current assets divided by current liabilities
question
Working capital is calculated by taking
answer
current assets minus current liabilities.
question
A liquidity ratio measures the
answer
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
question
The ability of a business to pay obligations that are expected to become due within the next year or operating cycle is
answer
liquidity.
question
Based on the following data, what is the amount of current assets?
answer
Accounts receivable 95000 Cash 65000 Inventory 125000 Short-term investments 75000 Prepaid insurance 1000 $361000
question
Based on the following data, what is the amount of working capital?
answer
139080+ $85400 + $168360 + $97600 + $2440) - (78080 + $68320) = $346480 (Acc. rec. + Cash. + Inv.+ Sh.-term inv. + Prep. ins.) - (Acc. Pay. + Not. Pay.) $346480
question
Using the following balance sheet and income statement data, what is the earnings per share?
answer
$42900 ÷ $15200 = $2.82 (Net inc. ÷ Ave. sh. out.) $2.82
question
Using the following balance sheet and income statement data, what is the debt to assets ratio?
answer
$41300 ÷ $118000 = $35.00% (Tol. Liab. ÷ Tot. assets) 35.00 percent
question
Generally accepted accounting principles
answer
are accounting rules that are recognized as a general guide for financial reporting.
question
The two fundamental qualities of useful information are
answer
relevance and faithful representation
question
A company using the same accounting principles from year to year is an application of
answer
consistency
question
Which of the following is a constraint in accounting?
answer
Cost