Author: Anonymous

Sing Sing Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days’ sales in inventory (rounded to whole days) is:

Mah Jong Company’s most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is:

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

Interest expense is not:

The heading on every financial statement lists the three W’s—Who (the name of the business); What (the name of the statement); and Where (the organization’s address).

The description of the relation between a company’s assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

Sing Sing Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days’ sales in inventory (rounded to whole days) is:

An advantage of common-size statements is that they reflect the dollar magnitude (size) of the different companies under analysis.