All of the following are true regarding financial statement analysis ratios associated with liabilities except Question 15
A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions . Question 16
A master budget is most useful in evaluating a manager ' s performance in controlling costs . Question 17
The master budget reflects management ' s long-term plans encompassing five years or more . Question 18
The debt to assets ratio measures the percentage of the total assets provided by creditors
Question 19
A company whose current liabilities exceed its current assets may have a liquidity problem . Question 20
During 2014 , Phelps Corporation reported net sales of $ 3,000,000 , net income of $ 1,320,000 , and depreciation expense of $ 80,000 . Phelps also reported beginning total assets of $ 1,000,000 , ending total assets of $ 1,500,000 , plant assets of $ 800,000 , and accumulated depreciation of $ 500,000 . Phelps ‘ s asset turnover ratio is
Final Part 2 Question 1
A manager of a cost center is evaluated mainly on