Questions for Chapter 3
What is the operating cycle?
The cash-to-cash cycle starting when a company receives goods to sell (or employees
work in a service firm) and ends when the customer pays cash to the business. Aka the
Questions for Chapter 8
1. What is managerial accounting and how is it different from financial accounting?
It is the process of identifying, measuring, analyzing and interpreting information in pursuit
of the organizations goals. They work sid
Questions for Chapter 11
1. How can we use the contribution margin (CM) approach to find the break-even point?
Fixed Expenses/ Contribution of each unit= BE point in units
Fixed Expenses/Contribution margin ratio*= BE point in sales dollars
Return on Assets: Net Income/Avg. total assets
How much the firm earned for each dollar of investment
Net profit margin: Net income/Net sales
How much of every dollar is profit
Asset turnover ratio: Net sales/Avg. total assets
How many sale dollars the co