Match the Following Terms with Their Definitions

question 85

Multiple Choice

Match the following terms with their definitions.
-Vertical analysis

• A)Uses a base year
• B)Inventory and prepaid expenses are subtracted
• C)A liability
• D)Net sales ÷ total assets
• E)Actual sale after returns on discounts
• F)Current assets ÷ current liabilities
• G)What we owe creditors
• H)Data placed side by side
• I)Cash, supplies
• J)Obligations due within one year
• K)Cost of goods for resale
• L)Obligations that are not due for at least one year
• M)Total this period is compared by amount of percent to same total last period
• N)Part of stockholders' equity
• O)What customers owe
• P)Dollars not shown
• Q)Paid in advance
• R)Profit
• S)Revenues and expense for a specific period of time
• T)Prepared as of a particular date
• U)Beginning inventory plus new purchases - ending inventory
• V)True cost of purchases
• W)Includes no plant and equipment assets
• X)Sales - cost of goods sold
• Y)Each liability and equity is analyzed as a percent of the total

Comprehend the significance of compa-ratios in evaluating employee compensation.

Distinguish between different types of individual incentive plans and their applications.

Differentiate between equal pay for equal work and pay equity concepts.

Understand the advantages of skill-based pay in workforce flexibility.

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Definitions:

Patent

Legal protection granted by the government to an inventor, giving them exclusive rights to use, produce, and sell their invention for a certain period of time.

Copyright

A legal right granted to an individual or entity to exclusively produce, publish, sell, or distribute the original creative work for a specified period of time.

Goodwill

An intangible asset that arises when a company acquires another company for a premium value, representing the excess of purchase price over the fair market value of the acquired company's identifiable assets and liabilities.

Fixed Assets

Fixed Assets are long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be converted to cash within a year.