1. One of the major objectives of financial plans is to build traffic.
True
False
2. Which of the following is a type of financial statement fraud?
All of these answers are correct
Taking advantage of the accounting cutoff period to boost sales
Concealing paperwork related to expenses
Overstating inventory value
Not disclosing all changes in accounting procedures
3. The income statement includes which of the following?
Gross Profit
Net Income before taxes
Income taxes
Operating Expenses
All of these answers are correct.
4. Which is a category of assets?
Long-term assets
Current Assets
Concurrent
Long-term assets and current assets
None of these answers is correct
5. Blockbuster Video and the Borders Group, Inc. are companies that have successfully reorganized after declaring bankruptcy.
False
True
6. If current assets are $50,000 and current liabilities are $68,000 then the current ratio is .27 to 1.
True
False
7. Gross profit is the difference between the retailer’s net sales and the cost of goods sold.
False
True
8. Primary statements or reports found in a retail accounting system include which of the following?
None of these answers is correct.
Site selection criteria
A report on growth management
a balance sheet
Inventory projections
9. A retail accounting system
is a storage center for laws related to running the business
helps a retailer account for each employee
houses information related to site location
can only be accessed by upper management
None of these answers is correct.
10. Liquidity ratios reflect management’s control of
long-term liabilities
current assets and current liabilities
cash
All of these answers are correct
long-term assets