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

A simple tool that is widely used in accounting to represent a ledger account and to understand how debits and credits affect an account balance is called a:

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.

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?

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

 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: