stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Analysis and Interpretation Lesson #6 Review Flashcards | StudBud
Explore
/
Analysis and Interpretation Lesson #6 Review
Analysis and Interpretation Lesson #6 Review
11 terms
·
StudBud Administration
·
195 plays
Analysis and Interpretation Lesson #6 Review
Flashcards
11 cards
F
Practice quiz
P
Host live
L
Questions
11
Answers
1
The suitability of stock can be measured using the following non financial indicator:
Number of sales returns
Purchase return figures
Stock Writedown Ledger account
Sales return figures
2
Employees are important to a business as they:
help it make a profit
use assets
are resp. for tasks like generating sales & managing stock
serve customers
3
Businesses also need to be aware of the eco conditions as they will impact on some businesses
False
True
4
The business's relationship with customers is important because (choose most correct)
without customers there is no revenue
they lead to profit
customers can shop elsewhere
choose how to spend their money
5
To control expenses you need to manage stock, non current assets and employees
True
False
6
Non-Financial Information to assess Profitability doesn't include
Customer satisfaction survey results
Sales Figures
Number of repeat sales
Number of sales returns
7
Non-financial information is used to assist with decision-making.
False
True
8
To assess the business's relationship with employees you should consider:
Average length of employment
Staff absenteeism
Staff Turnover
All 3 of these options
9
Users of the financial infoshould not solely rely on profitability indicators & the I/S alone.
True
False
10
Which is NOT a limitation of Ratio Analysis
RATIOS ARE BASED ON HISTORICAL DATA
CONSISTENCY IN ACCOUNTING METHODS
HISTORICAL COST ACCOUNTING
MANY RATIOS RELY ON AVERAGES
11
Which is NOT a strategy to improve profitability through earning revenues
Mark Up
Customer Service
Drawings
Advertising