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Management 3.15.23 Flashcards | StudBud
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Management 3.15.23
Management 3.15.23
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Answers
1
Inventory turnover rate, is a test of which of the following? (slide 32)
Efficiency
Liquidity
2
Internal standards compare the firm's ratios with values calculated previously in the same firm. (slide 17)
False
True
3
Which of the following is another name for the income statement? (slide 9)
Balance Sheet
None of the above
Statement of financial position
Profit and Loss
4
If the accounts payable collection period is too high which of the following could be the cause? (slide 31)
Neither
Not taking maximum advantage of available cash discounts
Both
Paying your bills sooner than necessary
5
Owner's equity is how much is left over (Slide 5)
True
False
6
Which of the following is a test of liquidity?
Current ratio
All of the above
Acid test
Accts payable collection period
7
Which of the following definitions is correct? (Slide 5)
Assets: How much is left over
Assets: what the firm owns
Liabilities: what the firm owns
All of the above
8
If the current ratio is too low, which of the following could be a possibility? (slide 21)
Inventory too tight (c)
High short-term debt (a)
a & c
Too much cash (b)
9
In accounts receivable collection period, _____ values indicate good credit managment. (slide 38)
lower
higher
10
Med safety management includes principles, pharmacist responsibilities, and root cause analysis of med errors (slide 12)
True
False
11
Current assets are short-term assets that may be converted to cash in the next operating cycle (Slide 9)
True
False
12
What are revenues? (Slide 7)
All of the above
"Sales" in merchandise firms
Cash or promises of cash resulting from operations
"Fees" in service firms
13
What is included in financial accounting? (Slide 12)
None of the above
Cost analysis
Financial Statements
All of the above
14
Which of the following are reported on the balance sheet? (slide 7)
All of the above
Liabilities
Assets
Owner's Equity
15
What is the most precious asset of most organizations? (Slide 11)
Human Resources Management
Accounting
Operations Management
Marketing
16
The difference between current and non-current liabilities is when the debts originated (Slide 11)
True
False
17
Accounts receivable turnover measures the rate at which accounts receivable are being collected on an annual basis. (42)
True
False
18
Which definition is correct? (Slide 5)
Owner's equity: what the firm owes
Liabilities: what the firm owes
All of the above
Assets: what the firm owes
19
Net income = revenues - expenses (slide 7)
True
False
20
Net working capital = current assets + current liabilites. (slide 45)
True
False
21
Money owed to the firm by customers as a result of the extension of credit such as charged sales (Slide 10)
Profit
Accounts Payable
Inventory
Accounts receivable
22
If a pharmacy's assets = $500k and liabilities = $400k, what is the owner's equity?
$500k/$400k = $1.25k
$500k - $400k = $100k
$500k + $100k = $600k
$400k - $500k= $-1k
23
If the value on the acid test is too low, consider decreasing the cash on hand. (slide 26)
False
True
24
If the current ratio is too high, which of the following could be the issue? (slide 22)
Inventory too tight
Too much cash on hand
All of the above
Accounts receivable too low
25
The gross margin requires which of the following for calculation? (slide 11)
Sales
Neither
Cost of Goods Sold
Both
26
Which of the following is the price the pharmacy actually pays for the product? (slide 36)
Out-of-Stoke costs
Carrying costs
Procurement cost
Acquisition cost
27
What are expenses? (Slide 7)
Gross earnings
Net earnings
Costs incurred to generate revenues
Costs incurred to generate net income
28
When posting transactions to T-accounts, credits are on the left side and debits are on the right side (Slide 17)
True
False
29
Owner's equity comes from two places: invested earnings and retained capital (Slide 13)
True
False
30
The ease with which an asset is converted to cash (Slide 10)
Liquidity
Net income
Inventory
Cash
31
Which of the following is the past financial performance of the firm? (slide 4)
Balance Sheet
Cash Flow Statement
Income Statement
All of the above
32
Coin, currency, personal checks, charge card receipts, and traveler's checks (Slide 10)
Liquidity
Net income
Inventory
Cash
33
What is accounting? (Slide 4)
Link between business events and business decisions
Language of business
Information infrastructure of the firm
All of the above
34
Non-current assets are not sold, consumed, or converted to cash in the short term (Slide 9)
False
True
35
Which of the following is true regarding assets? (Slide 9)
Includes cars
Includes land, buildings, and computers
All of the above
Includes inventory
36
If your inventory turnover value is too low, which of the following could be true? (slide 35)
Not buying the right type of merchandise
Inventory too low
37
What is the accounting equation? (Slide 5)
Liabilities = Assets + Owner's Equity
Assets = Owner's Equity - Liabilities
Assets = Liabilities - Owner's Equity
Assets = Liabilities + Owner's Equity
38
Financial statements contain all of the important influences that affect the finances of a firm. (Slide 5)
False
True
39
How are transactions posted to T-accounts? (Slide 17)
Expenses increase OE
Revenues decrease OE
Asset is a debit
Liabilities or OE is credit
