Answer the following statements true (T) or false (F)
1. Ratios are used to compare different firms in the same industry.
2. Ratios are not considered as important to non-accounting functional areas of a business such as marketing, head of production and human resources.
3. Asset utilization ratios include receivable turnover, average collection period, inventory turnover, fixed asset turnover and total asset turnover.
4. Financial ratios are used to weigh and evaluate the operational performance of the firm.
5. Liquidity ratios indicate how fast a firm can generate cash to pay bills.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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The primary means of protecting an original invention is a
A. patent. B. copyright. C. trademark. D. trade secret. E. nondisclosure agreement.
Assume that a company is facing a loss contingency. GAAP requires the company to recognize a liability even if the company cannot determine whether or not the event has occurred.
Answer the following statement true (T) or false (F)
Aubosh Body Works is a retailer that exclusively sells a wide selection of personal care products, such as deodorants, lip balms, eye masks, perfumes, moisturizers, and wet wipes. It is evident that Aubosh Body Works is a(n) _____.
A. outlet store B. discount store C. convenience store D. specialty store
Which of the following would not be considered a direct cost with respect to the service department of a new car dealership?
A. Salary of the department manager. B. Repair parts consumed. C. Property taxes paid by the dealership. D. Wages of repair technicians. E. Depreciation on new equipment used to analyze engine problems.