Question 1

Current liabilities are those coming due in the long term.

Accepted Answer

Current liabilities are those coming due in t he short term, usually the coming year

Question 2

A comparison of the company's current assets and its current liabilities reveals its working debt.

Accepted Answer

A comparison of the company's current assets and its current liabilities reveals its wor king capital

Question 3

If $20,000 is made as a down payment and $80,000 is financed with a bank note to buy land and a building, the $80,000 is the

Accepted Answer

The $80,000 financed with a bank note is a long-term debt because it is not expected to be paid off within one year, which is the typical time frame for short-term debts. Assets refer to what is owned, and accounts receivable refers to money owed by others to the company.

Question 4

An example of fixed assets is

Accepted Answer

The answer of An example of fixed assets is
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Question 5

Balance sheets are usually done at the beginning of each month.

Accepted Answer

Balance sheets are usually done at the end of each mont h

Question 6

Examples of current liabilities include all of the following EXCEPT

Accepted Answer

"Formulas" is not a type of current liability. The other options are all typical examples of current liabilities.

Question 7

The advantage of breaking out sales and cost of goods sold/sales into separate categories over combining all sales and costs into one category is that this

Accepted Answer

The answer of The advantage of breaking out sales and...

Question 8

The only financial statement that managers need to manage their business effectively is the P&L statement.

Accepted Answer

The P&L statement is not the only statement t hat managers need to manage their business effectively

Question 9

Assets show the results of the organization's operations, such as revenues, expenses, and profit or loss.

Accepted Answer

Assets show what the organization is worth at a single point in time

Question 10

How are financial controls executed?

Accepted Answer

The answer of How are financial controls executed?...

Question 11

The net income portion of the P&L statement is the bottom line and is a measure of a firm's ability to operate at a profit.

Accepted Answer

This statement is true. The net income is the bottom line on the P&L statement and is a measure of how much profit a company has made after deducting all of its expenses. It is a key indicator of a company's financial health and ability to generate profit.

Question 12

A business's noncurrent assets would be those that have a useful life of more than one year.

Accepted Answer

Noncurrent assets are assets that are not intended to be turned into cash within one year. They usually have a useful life of more than one year. Examples include property, plant, and equipment, long-term investments, and intangible assets.

Question 13

The portion of a bank note that is not payable in the coming year is short-term debt.

Accepted Answer

The portion of a bank note that is not payable in the coming year is long-term debt/liability

Question 14

Cash flow is the most immediate indicator of an impending problem in the firm.

Accepted Answer

Cash flow is the movement of cash in and out of a business. It is crucial for the survival of a business because a lack of cash flow can lead to an inability to pay bills, purchase inventory, and ultimately, failure. Therefore, monitoring cash flow is essential for identifying and addressing any problems before they become too severe.

Question 15

The income/profit and loss statement represents the relation of income and expenses for the life of the firm.

Accepted Answer

The income/profit and loss statement represents the relation of income and expenses for a specific time interval

Question 16

An example of variable expenses includes

Accepted Answer

The answer of An example of variable expenses includes
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Question 17

What is the theory behind non-financial controls?

Accepted Answer

The answer of What is the theory behind non-financial controls?...

Question 18

The key to operating a profitable business is to maximize your budget.

Accepted Answer

The key to opera ting a profitable business is to maximize your gross profit

Question 19

Profit and cash flow mean the same thing in the short run.

Accepted Answer

Profit and cash flow do not mean the same thing in the short run

Question 20

The cost of goods sold/sales portion of the income statement shows the cost of products purchased for resale, or the direct labor cost for service.

Accepted Answer

The cost of goods sold/sales portion of the income statement represents the cost of products or labor directly attributed to generating revenue, whether it be through resale or providing a service.

Quiz 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management