1. Planning to meet profit goals and analysing the effect of increased sales on net income is called?
break even analysis
2. The point at which a business moves from a loss to a profit position is called?
3. Costs that must be paid each month whether sales take place or not?
4. If our fixed costs are $95,000 and our variable cost percentage is 45%, what is our sales break-even point?
not enough information is given
less than $95,000
5. How many tuxedos does Bromley's need to rent each month at $125 if the break even point is $200,000?
6. The ability to pay debts as they come due is called?
7. Which account listed below is the most liquid?
8. Which expense is not an out of pocket expense?
interest on the loan
9. Making payments on the business loan affects what two accounts?
salary expense and FICA
notes payable and interest expense
federal income tax
10. To prepare a cash flow analysis what accounting form do you need to use to get the expenses?
11. Money received after the sale is made is called?
12. The ending cash balance for one month becomes?
the beginning cash balance for the next month
the ending cash balance for the next month
the net income
13. If salary expense is $100,000 and cost of goods sold percentage is .5107, what is the total amount of a VE contract?
14. If total revenue is $275,000 and the cost of goods sold percentage is 65%, what is the cost of goods sold?
15. If total sales are 175,000 and cost of goods sold is $95,000, what is the gross profit ?
none of the above
Chapter 4 Accounting Test