Which factor does not explain differences or changes in ROA?
a. Operating leverage
b. Cyclicality of sales
c. Product life cycle
d. Financial leverage
D
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Define identification-based distrust.
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. A lag indicator is a performance measure that forecasts future performance. 2. Operational performance measures are nonfinancial measures that evaluate a firm's performance on the basis of effectiveness and efficiency to ensure all segments of the business are working together to achieve the company's goals. 3. The balanced scorecard is a performance evaluation system that requires management to consider financial measures of performance, but not nonfinancial measures. 4. Key performance indicators (KPIs) are summary performance measures that help managers assess whether the company is achieving its goals. 5. The balanced scorecard focuses only on lead indicators, because lag indicators are not important for performance evaluation. 6. A company uses a balanced scorecard and has established a key performance indicator for product quality. If the actual warranty claims are higher than expected, there is an indication that the quality standards have been met.
Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.
A. Building; Prepaid Insurance; Supplies Expense. B. Cash; Prepaid Insurance; Equipment. C. Unearned Revenue; Accounts Payable; Dividends. D. Notes Payable; Cash; Dividends. E. Accounts Payable; Cash; Supplies.
Which of the following is not a generally accepted basis for inventory valuation?
a. net realizable value b. variable manufacturing cost c. replacement cost d. acquisition cost e. net realizable value reduced by a normal profit margin