Untitled Quiz

Sales is the activity related to selling goods or services, or the amount of goods or services sold, in a given period. The seller or provider completes a sale in response to an acquisition, appropriation, requisition, or direct interaction with the buyer at the point of sale.

Revenue is the total amount of money that a company receives during a specific period, including discounts and deductions for returned merchandise.

Cost of Good Sold is the direct costs associated with producing the goods sold by a company, including the cost of materials and direct labor used in creating the goods.

<p>Cash on Hand is the amount of money in the form of cash that a company has after it has paid all of its costs.</p> Signup and view all the answers

<p>Inventory is the array of finished goods or goods used in production held by a company.</p> Signup and view all the answers

<p>A business asset is a piece of property or equipment purchased exclusively or primarily for business use.</p> Signup and view all the answers

<p>Current Assets are balance sheet accounts representing the value of all <strong>assets</strong> that can be converted into cash within one year.</p> Signup and view all the answers

<p>A short-term asset is an asset that a business expects to sell, convert to cash, or liquidate within one year to pay for liabilities.</p> Signup and view all the answers

<p>Operating Assets are those assets acquired for use in the ongoing operations of a business; these are assets that businesses need to generate revenue.</p> Signup and view all the answers

<p>Capitalized Assets refer to the act of recording a cost or expense on the balance sheet for the purpose of delaying full recognition of the expense.</p> Signup and view all the answers

<p>A Tangible Asset is an <strong>asset</strong> that has a physical form.</p> Signup and view all the answers

<p>Accounts Receivable is money owed to a firm for goods or services that have been delivered or used but not yet paid for.</p> Signup and view all the answers

<p>Accounts Payable is an accounting entry that represents a company's obligation to pay off short-term debt to its creditors or suppliers.</p> Signup and view all the answers

<p>Notes Payable is a written promissory note outlining a borrower's agreement to pay back a specific amount with interest over a predetermined period.</p> Signup and view all the answers

<p>Accruals are earned revenues and incurred expenses that have an overall impact on an income statement.</p> Signup and view all the answers

<p>Long Term Debt consists of loans and financial obligations lasting over one year.</p> Signup and view all the answers

<p>Common Stock is a security that represents ownership in a corporation.</p> Signup and view all the answers

<p>Retained Earnings are the net earnings after dividends that are available for reinvestment in the company's core business or to pay down its debt.</p> Signup and view all the answers

<p>Liabilities are legally binding financial debts or obligations a company incurs during business operations.</p> Signup and view all the answers

<p>Equity is the value of an asset less the amount of all liabilities on that asset.</p> Signup and view all the answers

<p>Depreciation is an accounting method for allocating the cost of a tangible asset over its useful life to account for declines in value over time.</p> Signup and view all the answers

<p>Amortization is an accounting technique used to lower the cost value of a finite life or intangible asset over time in a systematic manner through scheduled charges to income.</p> Signup and view all the answers

<p>Interest Expense is a non-operating expense shown on the income statement that represents interest payable on any borrowings.</p> Signup and view all the answers

<p>Net Income is equal to net earnings (profit) calculated as sales less COGS, SG&amp;A, operating expenses, depreciation, interest, taxes, and other expenses.</p> Signup and view all the answers

<p>SGA is an initialism that represents Selling, General and Administrative Expenses, which is a major non-production cost presented in the income statement.</p> Signup and view all the answers

<p>Long-term Debt, Common Stock, Retained Earnings, and Total Current Liabilities</p> Signup and view all the answers

<p>AT operating income = EBIT (1 – tax rate)</p> Signup and view all the answers

<p>NOWC = Current Assets - (Current Liabilities - Notes Payable)</p> Signup and view all the answers

<p>FCF = [EBIT(1 - T) + Depreciation and Amortization] - [Capital Expenditures + ΔNOWC]</p> Signup and view all the answers

<p>MVA = Market Value of Equity - Book Value of Equity</p> Signup and view all the answers

<p>EVA = [EBIT(1 - T) - Investor-supplied capital * Cost of capital]</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers