PHRX 415 Exam 2

Variance can be caused by:

Which type of accounting is typically used by very small companies and, when permitted, for income tax reporting?

Which analysis compares the financial performance and current condition of a company in relation to a base amount?

Which of the following could be included in a balance sheet?

Assets include which of the following?

All of the following are assumptions of BEA for pharmacy except:

Internal users of accounting information include which of the following?

The six accounting principles are going concern, objectivity, conservatism, consistency, matching, and materiality.

Break even point can be presented in only two different forms; in total, and as a ratio

An income statement statement records a company's revenues and expenses for a specific period of time.

Equity includes which of the following

Which of the following is NOT a type of financial statement?

A financial ratio is computed by dividing one financial statement by the company's net profits.

Inventory and receivables turnover ratios can be used to measure how well a business uses its assets.

The IASB is the private group that sets both broad and specific principles for American companies.

Which of the following is calculated by dividing total liabilities by total assets?

Which of the following ratios should be used regarding a company's long-term financial obligations?

Which of the following discounts is a "blended" approach?

To calculate net profit margin you divide net income (after tax) by total sales.

Unclaimed prescriptions are a common factor affecting inventory management.

Liabilities include accounts payable, notes payable, taxes payable, and wages payable.

Which of the following is NOT a component of the statement of cash flows?

A positive variance is always favorable.

The shelf count and record count of Adderall at the pharmacy Ty works at never matches. This is an example of shrinkage.

A financial ratio can be used to make comparisons between two or more units within a single organization.

"Buy 11, get the 12th free!" is an example of what type of discount?

When revenue or expense < budgeted amount, that is classified as a positive variance.

Which of the following is an examination of the relationship between costs, volume, and profit?

Stock depth = (review time + lead time) x average demand + safety stock

Which of the following is NOT an inventory management method?

Which of the following is NOT a factor influencing whether or not to stock?

Primary users of managerial accounting are external.

Which of the following is also called a statement of retained earnings?

The primary components of an income statement are...

Which of the following ratios would best be used to measure a company's overall success?

Pharmacy costs in BEA may be classified as fixed, variable, or semi-variable.

Ideally, a low turnover rate is preferred.

Profits can potentially increase or decrease by 20% for every 1% change in COGS

The SEC is the government group that establishes reporting requirements for companies that issue stock to the public.

An inventory turnover ratio is calculated by dividing credit sales by average account receivable.

A pharmacy near the beach should use which type of budget?

The major transactions recorded on a statement of owner's equity are net income and the payment of dividends.

Which of the following is the most efficient inventory management method?

Company A plans to spend $5,000 for marketing expenses in the next year. This should be part of which budget?

What is the typical range for gross profit margin?

75% of overall pharmacy business expense may be accounted for by the costs of goods sold (COGS).

Inventory management is often examined using ITOR which is calculated by dividing COGS by average inventory.

An accounting period may be of any duration and begin and end on any date as long as it's defined.

Which of the following measures an owner's reliance on credit?

A stay even point is useful to determine how many sales you need when changing price to maintain same profit level.

A balance sheet shows how much money a company made and spent over a period of time.

Objectives of budgeting include all of the following except...

Financial accounting mainly focuses on the future.

Which of the following shows a pharmacy's planned investment in fixed assets?

Which of the following shows the exchange of money between a company and the outside world over a period of time?

2 would be an acceptable current ratio for a healthy business.

A current and quick ratio is best used to provide information on a business's ability to meet it's long-term obligations

Which type of accounting is mostly needed for stakeholders (external users)?

The four types of ratios commonly used in pharmacy are profitability, liquidity, solvency, and turnover.

An income statement shows how much money a company made and spent over a period of time.

External users of accounting information include which of the following?

Rent and insurance are classified as controllable costs.

Regarding GAAP, what type of information affects the decision of its users?

The most common variable costs are: