Listed below are eight accounting terms introduced or emphasized in this chapter:
Each of the following statements may (or may not) describe one of these technical terms. In the space provided, indicate the accounting term described, or answer "none" if the statement does not correctly describe any of the terms.
(a) _______ is the amount by which operating earnings exceeds a minimum acceptable return on the average invested capital. The minimum rate of return represents the opportunity cost of using the invested capital.
(b) ______ is the operating income divided by the average invested capital associated with the generation of that income.
(c) ________ is computed by dividing the operating income by the total sales for a particular business segment or product line. It tells managers the amount of earnings generated from a dollar of sales.
(d) ________ give an employee the right to purchase a pre-specified number of shares at a pre-specified price within a certain future time period. They provide incentives for managers to increase stock prices.
(e) _______ is the set of activities necessary to create and distribute a desirable product or service to a customer.
(f) _______ is a specific type of residual income. It is computed by multiplying after-tax weighted average cost of capital by total assets minus current liabilities, and subtracting that product from the after-tax operating income.
(g) _______ is a measure created by dividing sales by the average invested capital to generate those sales. It tells managers the amount of sales generated by a dollar of invested capital.
(h) _______ is a system for performance measurement that links a company's strategy to specific goals, assesses progress towards those goals, and measures specific initiatives to achieve those goals. It is a systematic attempt to create a business performance measurement process that integrates objectives across four business lenses to achieve the organization's strategic goals.
$$\begin{array} { | l | l | }
\hline \text { Balanced score card } & \text { Residual income } \
\hline \text { Stock options } & \text { Return on investment } \
\hline \text { Capital turnover } & \text { Return on sales } \
\hline \text { Economic value added } & \text { Value chain } \
\hline
\end{array}$$

Question

Listed below are eight accounting terms introduced or emphasized in this chapter:
Each of the following statements may (or may not) describe one of these technical terms. In the space provided, indicate the accounting term described, or answer "none" if the statement does not correctly describe any of the terms.
(a) _______ is the amount by which operating earnings exceeds a minimum acceptable return on the average invested capital. The minimum rate of return represents the opportunity cost of using the invested capital.
(b) ______ is the operating income divided by the average invested capital associated with the generation of that income.
(c) ________ is computed by dividing the operating income by the total sales for a particular business segment or product line. It tells managers the amount of earnings generated from a dollar of sales.
(d) ________ give an employee the right to purchase a pre-specified number of shares at a pre-specified price within a certain future time period. They provide incentives for managers to increase stock prices.
(e) _______ is the set of activities necessary to create and distribute a desirable product or service to a customer.
(f) _______ is a specific type of residual income. It is computed by multiplying after-tax weighted average cost of capital by total assets minus current liabilities, and subtracting that product from the after-tax operating income.
(g) _______ is a measure created by dividing sales by the average invested capital to generate those sales. It tells managers the amount of sales generated by a dollar of invested capital.
(h) _______ is a system for performance measurement that links a company's strategy to specific goals, assesses progress towards those goals, and measures specific initiatives to achieve those goals. It is a systematic attempt to create a business performance measurement process that integrates objectives across four business lenses to achieve the organization's strategic goals.
 $$\begin{array} { | l | l | } 
\hline \text { Balanced score card } & \text { Residual income } \
\hline \text { Stock options } & \text { Return on investment } \
\hline \text { Capital turnover } & \text { Return on sales } \
\hline \text { Economic value added } & \text { Value chain } \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Listed below are eight accounting terms introduced or emphasized in this chapter:
Each of the following statements may (or may not) describe one of these technical terms. In the space provided, indicate the accounting term described, or answer "none" if the statement does not correctly describe any of the terms.
(a) _______ is the amount by which operating earnings exceeds a minimum acceptable return on the average invested capital. The minimum rate of return represents the opportunity cost of using the invested capital.
(b) ______ is the operating income divided by the average invested capital associated with the generation of that income.
(c) ________ is computed by dividing the operating income by the total sales for a particular business segment or product line. It tells managers the amount of earnings generated from a dollar of sales.
(d) ________ give an employee the right to purchase a pre-specified number of shares at a pre-specified price within a certain future time period. They provide incentives for managers to increase stock prices.
(e) _______ is the set of activities necessary to create and distribute a desirable product or service to a customer.
(f) _______ is a specific type of residual income. It is computed by multiplying after-tax weighted average cost of capital by total assets minus current liabilities, and subtracting that product from the after-tax operating income.
(g) _______ is a measure created by dividing sales by the average invested capital to generate those sales. It tells managers the amount of sales generated by a dollar of invested capital.
(h) _______ is a system for performance measurement that links a company's strategy to specific goals, assesses progress towards those goals, and measures specific initiatives to achieve those goals. It is a systematic attempt to create a business performance measurement process that integrates objectives across four business lenses to achieve the organization's strategic goals.
 $$\begin{array} { | l | l | } 
\hline \text { Balanced score card } & \text { Residual income } \
\hline \text { Stock options } & \text { Return on investment } \
\hline \text { Capital turnover } & \text { Return on sales } \
\hline \text { Economic value added } & \text { Value chain } \
\hline
\end{array}$$

Listed Below Are Eight Accounting Terms Introduced or Emphasized in This