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Praxis II Business Ed. Accounting Flashcards | StudBud
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Praxis II Business Ed. Accounting
Praxis II Business Ed. Accounting
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Test review for Praxi II Business Ed. Accounting
Flashcards
23 cards
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Questions
23
Answers
1
(cash + accounts receivables + marketable or short-term securities) ÷ current liabilities
quick ratio
current ratio
2
In an accrual accounting system transactions are counted when the orders are made or delivered?
True
False
3
Two popular activity ratios are
cash flow and equity ratio
quick ratio and current ratio
hamburger and french fry ratio
inventory turnover ratio and total asset turnover ratio
4
Return on Equity = net income ÷ shareholder equity?
False
True
5
Cost accounting looks at__
the asset to debt ratio of the company
looks at the cost of items such as products and projects
the borrowing cost of the firm
6
PpIS are popular because
help customers use point-of-sale systems
they provide up-to-date inventory management
They show more cash on hand
7
The purpose of a
trial balance
is to prove all debit val. balances = the credit val. balances?
false
true
8
Return on Equity Shows
shareholders equity
total liabilities
Asset valuation
profitability
9
The fundamental accounting equation states...
Assets = liabilities + Owners' equity
Owners' equity = assets + liabilities
Assets = Owners' equity - liabilities
Assets = Liabilities - owners' equity
10
In the PcIS the inventory Δ & the cost of goods sold are updated immediately as the item sells?
True
False
11
The current ratio is a tougher test for liquidity than the current ratio?
False
True
12
An indirect business cost is__
one directly related to the cost of production
an indirect cost such as the leasing cost of the building
13
A PcIS a purchases acct record is Δ when the purchase is made, but CoGS & inventory doesn't Δ
until the close of the accounting period
until cash is received
until restocking is necessary
14
In a cash accounting system the transactions are counted when the...
orders are made or delivered, even if no cash changed hands.
money is actually received or the expenses are paid out
15
Activity ratios show how balance sheet accounts can be transformed into...
equity
debt
debentures
sales or cash
16
An example of frequency distribution___
Total sales for a Five Guys for a month
a table showing how often students received a certain grade.
The batting average of each player on the Dodgers
17
activity ratios show a firm's
shareholder value
efficiency
debt level
equity
18
A bed sells in Jan and it paid in Feb. Accrual method would record it in Jan & the cash in Feb?
True
False
19
Liquidity ratios measure if a company can meet its obligations
in the long-term
in the next six months
in the short-term
20
Two types of inventory systems are periodic (PcIS) and perpetual inventory systems (PpIS)?
True
False
21
The higher the financial ratio is = more liquid the firm & more likely to meet short-term debts
true
false
22
In management accounts, accts are created that are suitable for managers?
False
True
23
Current assets ÷ current liabilities
cash ratio
quick ratio
current ratio
