The Balance Sheet of Tech Track Reports Total Assets of $400,000

question 83

Multiple Choice

The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year,respectively.Sales revenues are $1.1 million ($0.8 million in the previous year) ,net income is $40,000,and net cash flows from operating activities are $50,000.How does Tech Track's cash flow to sales ratio compare to the industry average of 5%?

• A)Better.
• B)Worse.
• C)Same as.
• D)Cannot be determined with the data provideD.

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Definitions:

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct period.

Special Journal

A specialized accounting journal designated for the recording of specific types of transactions, such as sales or purchases, to increase efficiency and organization.

General Journal

A primary accounting record used for recording all types of financial transactions, providing a chronological record of all business activities.

Personal Withdrawal

It refers to the money taken out of a business by its owner(s) for personal use, often considered as a draw against the owner's equity.