KIN 3804 Final Exam (Svensson) Questions
With Correct Answers
What are the different types of financial statements? - CORRECT ANSWER✔✔-
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Balance sheet, Income Statement, and Statement of Cash Flows
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Balance Sheet - CORRECT ANSWER✔✔-A financial statement that reports assets,
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liabilities, and owner's equity on a specific date.
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Balance Sheet Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Equity
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Income Statement - CORRECT ANSWER✔✔-A financial statement showing the
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revenue and expenses for a fiscal period.
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Income Statement Equation - CORRECT ANSWER✔✔-Revenues - Expenses = Net
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Income
Statement of Cash Flows - CORRECT ANSWER✔✔-A financial statement that
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provides financial information about the cash receipts and cash payments of a
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business for a specific period of time.
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Three key areas of statement of cash flows - CORRECT ANSWER✔✔-operating
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activities, financing activities, investing activities
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,How is the financial information organized on a balance sheet? - CORRECT
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ANSWER✔✔-Divided into two half sheets- left hand side (top= organizations | | | | | | | | | |
assets) and right hand side (bottom= organizations liabilities and equity)
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How is the financial information organized on a income statement? - CORRECT
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ANSWER✔✔-divided into operating revenues, operating expenses, non-operating | | | | | |
revenues, and non-operating expenses
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How is the financial information organized on statement of cash flows? -
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CORRECT ANSWER✔✔-three types- operating activities, investing activities, and
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financing activities |
Statement of Cash Flow operating activities - CORRECT ANSWER✔✔-Cash
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received or spent in regard to a company's business activities
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Statement of Cash flow investing activities - CORRECT ANSWER✔✔-Cash received
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or spent on an organization's investment activities
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Statement of cash flow financing activities - CORRECT ANSWER✔✔-Cash received
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or spent in regard to debt and repayment of debt
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Why would sport managers use financial ratios? - CORRECT ANSWER✔✔-Sport
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managers use financial ratios to compare their information of their business to
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the industry as well as other sport industries (competitors), helps them figure out
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the good and bad of their financial health, checking the status of your business
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and your competitors as well as ones you may want to invest in.
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, Liquidity Ratios - CORRECT ANSWER✔✔-The ability of an organization to meet its
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short-term financial obligations | |
-current |
-quick |
-cash
Current Ratio - CORRECT ANSWER✔✔-current assets/current liabilities (liquidity)
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Quick Ratio - CORRECT ANSWER✔✔-(Current Assets - Inventory) / Current
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Liabilities
Cash Ratio - CORRECT ANSWER✔✔-Cash / Current Liabilities
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Activity Ratios - CORRECT ANSWER✔✔-How effectively an organization manages
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its assets and the relationship between assets and sales
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Total Asset Turnover - CORRECT ANSWER✔✔-net sales/total assets
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Average Collection Period Ratio - CORRECT ANSWER✔✔-accounts receivable X
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365 / net sales
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Inventory Turnover Ratio - CORRECT ANSWER✔✔-Net sales/inventory
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Financial Leverage ratios - CORRECT ANSWER✔✔-Focused on the extent to which
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an organization relies on debt to fiancé their operation and can provide insight
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With Correct Answers
What are the different types of financial statements? - CORRECT ANSWER✔✔-
| | | | | | | | | |
Balance sheet, Income Statement, and Statement of Cash Flows
| | | | | | | |
Balance Sheet - CORRECT ANSWER✔✔-A financial statement that reports assets,
| | | | | | | | | |
liabilities, and owner's equity on a specific date.
| | | | | | |
Balance Sheet Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Equity
| | | | | | | | |
Income Statement - CORRECT ANSWER✔✔-A financial statement showing the
| | | | | | | | |
revenue and expenses for a fiscal period.
| | | | | |
Income Statement Equation - CORRECT ANSWER✔✔-Revenues - Expenses = Net
| | | | | | | | | |
Income
Statement of Cash Flows - CORRECT ANSWER✔✔-A financial statement that
| | | | | | | | | |
provides financial information about the cash receipts and cash payments of a
| | | | | | | | | | | |
business for a specific period of time.
| | | | | |
Three key areas of statement of cash flows - CORRECT ANSWER✔✔-operating
| | | | | | | | | | |
activities, financing activities, investing activities
| | | |
,How is the financial information organized on a balance sheet? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Divided into two half sheets- left hand side (top= organizations | | | | | | | | | |
assets) and right hand side (bottom= organizations liabilities and equity)
| | | | | | | | |
How is the financial information organized on a income statement? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-divided into operating revenues, operating expenses, non-operating | | | | | |
revenues, and non-operating expenses
| | | |
How is the financial information organized on statement of cash flows? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-three types- operating activities, investing activities, and
| | | | | | | |
financing activities |
Statement of Cash Flow operating activities - CORRECT ANSWER✔✔-Cash
| | | | | | | | |
received or spent in regard to a company's business activities
| | | | | | | | |
Statement of Cash flow investing activities - CORRECT ANSWER✔✔-Cash received
| | | | | | | | |
or spent on an organization's investment activities
| | | | | | |
Statement of cash flow financing activities - CORRECT ANSWER✔✔-Cash received
| | | | | | | | | |
or spent in regard to debt and repayment of debt
| | | | | | | | |
Why would sport managers use financial ratios? - CORRECT ANSWER✔✔-Sport
| | | | | | | | | |
managers use financial ratios to compare their information of their business to
| | | | | | | | | | | |
the industry as well as other sport industries (competitors), helps them figure out
| | | | | | | | | | | |
the good and bad of their financial health, checking the status of your business
| | | | | | | | | | | | | | |
and your competitors as well as ones you may want to invest in.
| | | | | | | | | | | |
, Liquidity Ratios - CORRECT ANSWER✔✔-The ability of an organization to meet its
| | | | | | | | | | | |
short-term financial obligations | |
-current |
-quick |
-cash
Current Ratio - CORRECT ANSWER✔✔-current assets/current liabilities (liquidity)
| | | | | | |
Quick Ratio - CORRECT ANSWER✔✔-(Current Assets - Inventory) / Current
| | | | | | | | | |
Liabilities
Cash Ratio - CORRECT ANSWER✔✔-Cash / Current Liabilities
| | | | | | |
Activity Ratios - CORRECT ANSWER✔✔-How effectively an organization manages
| | | | | | | | |
its assets and the relationship between assets and sales
| | | | | | | |
Total Asset Turnover - CORRECT ANSWER✔✔-net sales/total assets
| | | | | | |
Average Collection Period Ratio - CORRECT ANSWER✔✔-accounts receivable X
| | | | | | | | |
365 / net sales
| | |
Inventory Turnover Ratio - CORRECT ANSWER✔✔-Net sales/inventory
| | | | | |
Financial Leverage ratios - CORRECT ANSWER✔✔-Focused on the extent to which
| | | | | | | | | |
an organization relies on debt to fiancé their operation and can provide insight
| | | | | | | | | | | | | |
