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Critical Thinking Questions
Case 4-2
Simone is aware that there are a variety of security tools available for her new computer, but she is not entirely sure which kinds of products she needs for which situations. She asks you for some advice.
-Simone does her banking with Bank of America and was nervous lately when she began to be the victim of scams in which she was the recipient of official-looking email messages that appeared to be coming from Bank of America but ultimately turned out not to be legitimate. Which of the following can she use to keep this from happening in the future?
Net Income
The residual income of a business post all deductions, including taxes and expenses, from its gross income.
Net Sales
The total revenue generated from sales activities after deducting returns, allowances, and discounts.
Days' Sales in Inventory
A financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.
Ending Inventory
The overall value of products for sale at the close of a fiscal period.
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