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26) New Street Corporation had accounts receivable of $110,000 at the beginning of the year and $125,000 at the end of the year. Sales on account for the year amounted to $575,000. The amount to be reported on the statement of cash flows under the operating activities is: A) $575,000. B) $15,000. C) $560,000. D) $465,000. 27) Plymouth Corporation reported an increase in inventory of $75,000. The cost of goods sold for the year was $180,000. There was also a $7,000 decrease in accounts payable from the beginning of the year to the end of the year. What were Plymouth's […]

5) A high inventory turnover may indicate that a company is experiencing difficulty selling its inventory. 6) A ratio can be expressed as a proportion, a rate, or a percent. 7) A profitability ratio measures the income or operating success of a company for a given period of time. 8) The larger the working capital, the better the ability to pay debts. 9) Cash, short-term investments and net current receivables are all components of the acid-test ratio. 10) Inventory turnover is calculated by dividing the cost of goods sold by the average receivables. 11) Ratios that test liquidity include all […]

6) The audit report is signed-off by the corporation's management, confirming the audit was completed properly. 7) The combined audit report on financial statements and internal control over financial reporting typically contains five paragraphs. 8) An unqualified opinion by independent auditors indicates the fairness of the company's financial statements and the effectiveness of its internal controls. 9) A statement of responsibility, issued along with a company's financial statements, indicates that the financial statements are the responsibility of: A) the independent auditors. B) the shareholders. C) management. D) the board of directors. 10) The statement of management's responsibility, issued along with […]

60) Management accountants rarely interact with employees from other business functions such as marketing and customer service. 61) The CFO is the person responsible for the day-to-day operations of the company. 62) The treasurer and the controller report directly to the CFO. 63) The internal audit department reports directly to the audit committee, a subcommittee of the board of directors. 64) Managerial accountants no longer perform routine mechanical accounting tasks in most companies. 65) Managerial accountants are now considered to be similar to advisors and business analysts. 66) Oral and written communications skills are considered among the most valuable skills […]

78) Delivery expenses are charged to which of the following areas? A) Distribution B) Customer service C) Production or purchases D) Marketing 79) A product support hot line would be considered A) marketing. B) distribution. C) production or purchases. D) customer service. 80) Place the value chain elements in the correct order by numbering them from 1 to 6. ___Design ___Customer Service ___Marketing ___Research and Development ___Distribution ___Production or Purchases 81) Place the letter for the appropriate value chain activity on the line in front of each item. Letters may be used more than once or not at all. Assume […]