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 Question 2
Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10 %.