Alexa's First Job ? Alexa has just earned her undergraduate degree in accounting and has successfully completed the CPA exam. She recently interviewed with a relatively small and new company and was offered a job. The offer sounded very promising; the job had opportunities to grow with the company and provided diverse challenges. Alexa accepted the job. ? Once Alexa started working, she realized that the owners and employees did not have a general understanding of accounting. She had to teach them the steps in an accounting cycle so they would be able to understand how she was going to create reports. When she talked about the statement of financial position, they had no idea what she was talking about. She was the qualified individual responsible for accounting. No one else working

Question

with her had much knowledge. They did not even know the different financial ratios that someone could use to understand the financial standing of a company. Alexa knows it will be a challenge to keep everyone on the same page when it comes to numbers and reports. Refer to Alexa's First Job. To help the owners understand how effectively the firm is transforming sales into profits, Alexa should address which of the following ratios?

A. Return on sales
B. Earnings per share
C. Acid-test ratio
D. Return of owners' equity
E. Inventory turnover

Answer 1

Answer: A