The cash flow on total assets ratio compared to the return on total assets ratio can be used as an indicator of earnings quality. rev: 11_16_2017_QC_CS-109699

Use the following information to calculate cash paid for income taxes:           Income tax expense $ 50,000   Income tax payable, January 1   9,000   Income tax payable, December 31   7,000  

A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000 and payment is not due until the contract is fully completed. The required adjusting entry includes a $4,000 debit to Unearned Revenue.

A company has sales of $695,000 and cost of goods sold of $278,000. Its gross profit equals:

An adjusting entry often includes an entry to Cash.

All of the following regarding the current ratio are true except:

Marsha Bogswell is the sole stockholder of Bogswell Legal Services. Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services?

 A company sold $12,000 worth of bicycles with an extended warranty. The company’s experience is that warranty expense averages 2% of sales. The current period’s entry to record the warranty expense is:

Net sales divided by average total assets is the:

A total asset turnover ratio of 3.5 indicates that: