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chap 8 quiz.docx

chap 8 quiz.docx - Question 1 The cycle is the period of...

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Question 1 The _______ cycle is the period of time from the point at which cash is spent on raw materials to the point at which cash is collected on the sale of a finished product. Selected Answer: inventory to cash Answers: accounts receivable sales to cash inventory to cash cash to cash Question 2 Accumulated depreciation, accounts receivable and long term debt all appear on the _______. Selected Answer: balance sheet Answers: balance sheet earnings statement cash flow statement retained earnings statement Question 3 The _______ ratio measures the firm's effectiveness in generating profits with the available assets. Selected Answer: return on assets Answers: times interest earned net profit margin return on assets return on equity Question 4 _______ ratios measure how quickly assets are converted into sales and cash. Selected Answer: Activity Answers: Liquidity Activity Leverage
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Profitability Market Question 5 In a(n) _______ basis accounting system, income and expenses are recorded at the time they are incurred rather than when they are paid. Selected Answer: accrual Answers: accrual cash time expense Question 6 The A=L+OE accounting equation is relevant to the _______. Selected Answer: balance sheet Answers: balance sheet earnings statement cash flow statement retained earnings statement Question 7 _______ ratios measure the extent to which an organization uses debt as a source of financing and its ability to service that debt. Selected Answer: Leverage Answers: Liquidity Activity Leverage Profitability Market Question 8
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A(n) _______ is a record of all financial transaction assigned to specific accounts.
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