Cengage Accounting Chapter 7
Questions 2025/2026 With 100%
Correct Answers
\Q\.Deficit - ANSWER-✔A negative balance that remains after total expenses are subtracted
from total income.
\Q\.Return on sales - ANSWER-✔The ratio of net income to total sales.
\Q\.Vertical analysis - ANSWER-✔Reporting an amount on a financial statement as a percentage
of another item on the same financial statement.
\Q\.Stakeholders - ANSWER-✔Any persons or groups who will be affected by an action.
\Q\.Managerial accounting - ANSWER-✔The area of accounting which focuses on reporting
information to internal users.
\Q\.Ratio analysis - ANSWER-✔The calculation and interpretation of a financial ratio.
\Q\.Pay yourself first - ANSWER-✔A budgeting strategy of setting aside at least 10% of after-tax
income for saving and investing.
Questions 2025/2026 With 100%
Correct Answers
\Q\.Deficit - ANSWER-✔A negative balance that remains after total expenses are subtracted
from total income.
\Q\.Return on sales - ANSWER-✔The ratio of net income to total sales.
\Q\.Vertical analysis - ANSWER-✔Reporting an amount on a financial statement as a percentage
of another item on the same financial statement.
\Q\.Stakeholders - ANSWER-✔Any persons or groups who will be affected by an action.
\Q\.Managerial accounting - ANSWER-✔The area of accounting which focuses on reporting
information to internal users.
\Q\.Ratio analysis - ANSWER-✔The calculation and interpretation of a financial ratio.
\Q\.Pay yourself first - ANSWER-✔A budgeting strategy of setting aside at least 10% of after-tax
income for saving and investing.
