BUSI 690 HISTORICAL FINANCIAL
ANALYSIS FINAL TEST 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
◍ * Explain the nature of balance sheets (FI:093) (SP).
Answer: A balance sheet is a summary of a business' assets, liabilities, and
owners' equity. Assets are anything of monetary value that you own and are
classified as current or fixed. A current asset is cash or anything that can be
converted into cash in a year. A fixed asset is something used over a period
of time to operate your business, like property and equipment.Liabilities are
the amounts that a business owes and are classified as current or long-term.
A current liability is a debt the business must pay back during the upcoming
year. A long-term liability is a debt that is due after 12 months' time, such as
a long-term loan.Owners' equity (or net worth) is the amount of ownership
interest in the business. The difference between assets and liabilities equals
the owners' equity.
◍ What is the corporate tax rate for JB Corporation?.
Answer: 35%
◍ What is the formula for the Current Ratio?.
Answer: Current Assets / Current Liabilities.
◍ What is the Total Debt Ratio?.
Answer: (Total Assets - Total Equity) / Total Assets.
◍ What is the EBITDA for JB Corporation?.
Answer: $22.5 million
◍ breach of contract:.
Answer: The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
, ◍ *Describe the need for financial information (FI:579) (CS).
Answer: - Financial information includes raw data, records, and reports.
Consumers are essentially buying information when dealing with financial
services providers; businesses rely on accurate financial information to
make sound decisions.- Financial services products are bought and sold
based on information about costs, returns, and risks. Financial information is
used to match company resources to its planned activities and to identify
additional resources that may be needed or secured. Businesses use
information to identify ways to reduce expenses and invest company assets.
Also, information is used to forecast for future budgeting and growth, as
well as to control and manage risk.
◍ How do you calculate change in net working capital?.
Answer: Find net working capital for each year and take the difference.
◍ What is the formula to find net income?.
Answer: Sales - Expenses - Interest Expense - Depreciation - Taxes
◍ Explain the need to save and invest (FI:270) (CS).
Answer: - Investing and setting savings aside is essential to reaching
financial goals for the future.- Saving money in an emergency fund is
desirable so that you can have access to money quickly to pay for
unexpected expenses, emergencies, or job loss.- Savings accounts provide
security but do not increase in value quickly. Investments can provide much
greater returns, however they are more risky.- Saving and investing money
is important also due to the time value of money, in which money invested
now is worth more later because you would earn interest or dividends on it.
◍ What is the quick ratio for Russell's Deli?.
Answer: 1.10
◍ What is the quick ratio formula?.
Answer: Quick ratio = (Cash + Accounts Receivable) / Current Liabilities
◍ Explain the nature of financial needs. (FI: 064).
Answer: (order of savings: high interest debt, 6 mo savings, max roth,
ANALYSIS FINAL TEST 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
◍ * Explain the nature of balance sheets (FI:093) (SP).
Answer: A balance sheet is a summary of a business' assets, liabilities, and
owners' equity. Assets are anything of monetary value that you own and are
classified as current or fixed. A current asset is cash or anything that can be
converted into cash in a year. A fixed asset is something used over a period
of time to operate your business, like property and equipment.Liabilities are
the amounts that a business owes and are classified as current or long-term.
A current liability is a debt the business must pay back during the upcoming
year. A long-term liability is a debt that is due after 12 months' time, such as
a long-term loan.Owners' equity (or net worth) is the amount of ownership
interest in the business. The difference between assets and liabilities equals
the owners' equity.
◍ What is the corporate tax rate for JB Corporation?.
Answer: 35%
◍ What is the formula for the Current Ratio?.
Answer: Current Assets / Current Liabilities.
◍ What is the Total Debt Ratio?.
Answer: (Total Assets - Total Equity) / Total Assets.
◍ What is the EBITDA for JB Corporation?.
Answer: $22.5 million
◍ breach of contract:.
Answer: The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
, ◍ *Describe the need for financial information (FI:579) (CS).
Answer: - Financial information includes raw data, records, and reports.
Consumers are essentially buying information when dealing with financial
services providers; businesses rely on accurate financial information to
make sound decisions.- Financial services products are bought and sold
based on information about costs, returns, and risks. Financial information is
used to match company resources to its planned activities and to identify
additional resources that may be needed or secured. Businesses use
information to identify ways to reduce expenses and invest company assets.
Also, information is used to forecast for future budgeting and growth, as
well as to control and manage risk.
◍ How do you calculate change in net working capital?.
Answer: Find net working capital for each year and take the difference.
◍ What is the formula to find net income?.
Answer: Sales - Expenses - Interest Expense - Depreciation - Taxes
◍ Explain the need to save and invest (FI:270) (CS).
Answer: - Investing and setting savings aside is essential to reaching
financial goals for the future.- Saving money in an emergency fund is
desirable so that you can have access to money quickly to pay for
unexpected expenses, emergencies, or job loss.- Savings accounts provide
security but do not increase in value quickly. Investments can provide much
greater returns, however they are more risky.- Saving and investing money
is important also due to the time value of money, in which money invested
now is worth more later because you would earn interest or dividends on it.
◍ What is the quick ratio for Russell's Deli?.
Answer: 1.10
◍ What is the quick ratio formula?.
Answer: Quick ratio = (Cash + Accounts Receivable) / Current Liabilities
◍ Explain the nature of financial needs. (FI: 064).
Answer: (order of savings: high interest debt, 6 mo savings, max roth,
