GBA 398 Quiz
What is the normal balance for contra asset accounts?
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Debit |
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Credit |
Which of the following is an asset account?
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Prepaid Insurance |
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Accounts Payable |
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Unearned Revenue |
Manufacturing companies break-down manufacturing processes into different operational steps. The operating cycle is:
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Raw material, work in process, finished goods |
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Cash, raw material, work in process, finished goods, sales, cash |
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Cash, raw material, work in process, finished goods, sales |
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Raw material, work in progress, finished goods, sales |
The cash cycle is the:
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sum of the number of days of inventory and the average collection period. |
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sum of the number of days of inventory and the average collection period, less the |
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length of time it takes for the investment of cash into inventory to be returned from |
The ratio that explains how efficiently companies use their assets to generate revenue.
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Receivables turnover ratio |
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Income ratio |
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Quick ratio |
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Asset turnover ratio |
Use the following information for the next question.
The times interest earned ratio for 2003 is:
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4.0 times |
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4.8 times |
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5.2 times |
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3.0 times |
The quick ratio formula uses which of the following?
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Total assets |
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Cash |
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Total current assets |
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Inventory |
Which of these actions would likely result in a lower current ratio?
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Holding more stocks to offer better customer service. |
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Extending the time to pay suppliers |
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Increasing cash by selling excess fixed assets. |
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Allowing major customers more time to pay bills. |
Which of the following is a category or element of the balance sheet?
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Expenses |
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Losses |
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Liabilities |
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Gains |
The days required for a business to receive inventory, sell the inventory, and collect cash from the sale of the inventory.
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Inventory period |
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Accounts receivable period |
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Accounting period |
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Operating cycle |
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