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