Business Ch.15

Which of the following presents assets in the correct balance sheet order?

• Cash, land, accounts receivable, equipment

• Cash, land, accounts receivable, equipment

• Cash, inventory, equipment

• Accounts receivable, buildings, inventory, land

• Accounts receivable, buildings, inventory, land

All of the following are current assets except

• office equipment

• cash

• prepaid insurance

• accounts receivable

• marketable securities

The cash at the end of the year reported on the statement of cash flows is the same as the

• cash amount reported on the firm's balance sheet

• cash amount reported on the firm's income statement

• net income reported on the firm's income statement

• owners' equity amount reported on the firm's balance sheet

• total amount of assets reported on the firm's balance sheet

​Most corporations include important elements of their financial statements ___ in their annual reports to permit readers to compare financial data.

• for recent years

• for the year in question

• ​for other companies

• ​for the life of the company

Hillary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

• put a brief description of each ad piece in a hat and draw one

• ignore any feedback that she gets from coworkers and consumers and make the decision herself

• gather information from coworkers and consumers on their reaction to the different ad pieces

• let her supervisor choose the ad piece

• discard all ad pieces and develop a new advertising campaign

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as

• current assets

• long-term liabilities

• fixed assets

• owner's equity

• revenue

Ultra Big Corporation, Inc. is preparing its annual report for shareholders. The statement of cash flows, which is included in the report, shows that the company sold one million shares of stock but repurchased half a million of those shares. It also shows that the company issued a ten-cent per share dividend. Where would this information be found on the statement of cash flows?

• Cash flows from operating activities

• Cash flows from investing activities

• Cash flows from financing activities

• Cash flows from current activities

Commonly used in accounting analysis, a ____ shows a relationship between two elements of a firm's financial statements.

• statistic

• comparative number

• current ration

• financial ratio

• formula

Since furniture and store equipment for Billy's Boutique will be held or used for a period longer than one year, they are considered

• fixed assets

• owner's equity

• revenue

• current assets

• prepaid expenses

The specific types of information that managers need depend on their area of management and on their

• level within the firm

• understanding of data

• background in computer science

• use of the information

• accounting background