Week 5 Quest

9 . The concept of materiality requires a large company to record the purchase of a 10

waste basket as an asset and depreciate it over its useful life . True

False

Listed below are four companies with their respective current ratios Based on these current ratios , which company is in the most liquid position

A : 2 .0

B : 1 .8

C : 2 .5

D : 2 .1

Internal control involves all of the following except

Consistent branding

Protection against theft of assets

Enhancement of the reliability of accounting

information

Promoting efficient and effective operations

The gross profit percentage is an indication of how well

management is controlling expenses

how much above cost a company sells its products

how much cash is generated per dollar of sales

efficient management is in utilizing assets

6 . In a classified balance sheet , assets are usually classified as

a . current assets long-term assets property , plant , and equipment and intangible assets

b . current assets long-term investments property , plant , and equipment and common stocks

c . current assets long-term investments tangible assets and intangible assets

d . current assets long-term investments property , plant , and equipment and intangible assets

7 . For 2007 Mossland Corporation reported net income of 28 ,000 net sales 400 ,000 and average share outstanding 6 ,000 . There were no stock dividends . What was the 2007 earnings per share

a 4 .67

b 0 .25

c 66 .67

d 14 .86 Problems In financial performance terms Ziehart Pharmaceuticals is better than the other organization because a higher gross...