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Multiple choice

1 ____________ refers to an organization's ability to generate future revenues and meet long-term obligations.

a. Efficiency

b. Liquidity

c. Profitability

d. None of the other answers

2.The ______________ ratio indicates how much of every sales dollar was retained as income.

a. Basic Earnings Per Share

b. Days Sales in Inventory

c. Profit Margin

d. None of the other answers

3.Which of the following would be considered an indirect cost to a factory?

a. None of the other answers

b. salaries of the payroll department employees

c. raw materials purchased to use in the primary products.

d. salaries of assembly production workers

4. True or False: Managerial Accounting is not as strict in it's adherence to GAAP as Financial Accounting.

a. True

b. False

5.Which of the following categories of costs incurred by manufacturers is typically included in both Prime and Conversion Costs?

a. Direct Materials

b. Direct Labor

c. Factory Overhead

d. None of the other answers

Solution Preview

1. None of the above - the answer is solvency
2. Profit ...

Solution Summary

The solution explains some multiple choice questions relating to accounting