Questions from Managerial Accounting

Q: Which of the following is a financing activity? a

Which of the following is a financing activity? a. Increase in inventories b. Purchase of land c. Increase in accounts receivable d. Issuance of a mortgage e. All of these.

Q: Comfy Fit Company manufactures two types of university sweatshirts, the Swoop

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed...

Q: Which method calculates operating cash flows by adjusting the income statement on

Which method calculates operating cash flows by adjusting the income statement on a line-by-line basis? a. Direct method b. Indirect method c. Working paper approach d. Income method e. None of these...

Q: A worksheet approach to preparing the statement of cash flows

A worksheet approach to preparing the statement of cash flows a. is a useful aid. b. uses a spreadsheet format. c. offers an efficient and logical way of organizing the data. d. allows an easy extrac...

Q: In a completed worksheet, a. the debit column

In a completed worksheet, a. the debit column contains the cash inflows. b. the debit column contains the cash outflows. c. the credit column contains the cash inflows. d. the credit column contains...

Q: Name the two major types of financial statement analysis discussed in this

Name the two major types of financial statement analysis discussed in this chapter.

Q: What are liquidity ratios? Leverage ratios? Profitability ratios?

What are liquidity ratios? Leverage ratios? Profitability ratios?

Q: Identify two types of standards used in ratio analysis. Explain why

Identify two types of standards used in ratio analysis. Explain why it is desirable to use both types.

Q: What information does the quick ratio supply that the current ratio does

What information does the quick ratio supply that the current ratio does not?

Q: Suppose that the accounts receivable turnover ratio of a company is low

Suppose that the accounts receivable turnover ratio of a company is low when compared with other firms within its industry. How would this information be useful to the managers of a company?