EEE 2022/2023 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS ASSUARED SUCCESS A+
Accounts Receivable - ANSWER-the money owed to a firm by its customers
assumption sheet - ANSWER-an explanation in a new firm's business plan of
the sources of the numbers for its financial forecast and the assumptions
used to generate them
Balance Sheet - ANSWER-a snapshot of a company's assets, liabilities and
owner's equity at a specific point in time
break-even point - ANSWER-the point where total revenue received equals
total costs associated with the output
budgets - ANSWER-itemized forecasts of a company's income expenses, and
capital needs that are also important tools for financial planning and
controlling
constant ratio method of forecasting - ANSWER-a forecast approach using
the precent of sales method in which expense items on a firm's income
statement are expected to grow at the same rates as sales
cost of sales - ANSWER-all of the direct costs associated with producing or
delivering a product or service, including the material costs and direct labor
costs
current assets - ANSWER-cash plus items that are readily convertible to
cash, such as accounts receivable, inventories, and marketable securities
current liabilities - ANSWER-obligations that are payable within a year,
including accounts payable, accrued expenses and the current portion of
long-term debt
current ratio - ANSWER-a ratio that equals the firm's current assets divided
by its current liabilities
debt-to-equity ratio - ANSWER-a ratio calculated by dividing the firm's long-
term debt by its shareholders' equity
efficiency - ANSWER-how productively a firm utilizes its assets relative to its
rate of return
financial management - ANSWER-the process of raising money and managing
a company's finances in a way that achieves the highest rate of return
,EEE 2022/2023 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS ASSUARED SUCCESS A+
financial ratios - ANSWER-ratios showing the relationship between items on a
firm's financial statements that are used to discern whether a firm is meeting
its financial objectives and how it stacks up against industry peers
financial statement - ANSWER-written reports that quantitatively describe a
firm's financial health
financing activities - ANSWER-activities that raise cash during a certain period
by borrowing money or selling stock, and/or use cash during a certain period
by paying dividends, buying back outstanding stock, or buying back
outstanding bonds
fixed assets - ANSWER-assets used over a longer time frame, such as real
estate, buildings, equipment and furniture
forecasts - ANSWER-estimates of a firm's future income and expenses,
based on its past performance, its current circumstances and its future
plans
historical financial statements - ANSWER-reflect past performances and are
usually prepared on a quarterly and annual basis
income statement - ANSWER-a financial statement that reflects the results
of the operations of a firm over a specified period of time: prepared on a
monthly, quarterly, and annual basis
inventory - ANSWER-a company's merchandise, raw materials, and products
waiting to be sold
investing activities - ANSWER-activities that include the purchase, sale or
investment in fixed assets, such a real estate or buildings
liquidity - ANSWER-the ability to sell a business or other assets quickly at a
price that is close to market value; also, a company's ability to meet its
short-term financial obligations
long-term liabilities - ANSWER-notes or loans that are repayable beyond one
year, including liabilities associated with purchasing real estate, buildings and
equipment
net sales - ANSWER-total sales minus allowances for returned goods and
discounts
operating activities - ANSWER-activities that affect net income (or loss),
depreciation, and changes in current assets and current liabilities other than
cash and short-term debt
operating expenses - ANSWER-marketing, administrative costs, and other
expenses not directly related to producing a product or service
, EEE 2022/2023 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS ASSUARED SUCCESS A+
other assets - ANSWER-miscellaneous assets including accumulated goodwill
CORRECT ANSWERS ASSUARED SUCCESS A+
Accounts Receivable - ANSWER-the money owed to a firm by its customers
assumption sheet - ANSWER-an explanation in a new firm's business plan of
the sources of the numbers for its financial forecast and the assumptions
used to generate them
Balance Sheet - ANSWER-a snapshot of a company's assets, liabilities and
owner's equity at a specific point in time
break-even point - ANSWER-the point where total revenue received equals
total costs associated with the output
budgets - ANSWER-itemized forecasts of a company's income expenses, and
capital needs that are also important tools for financial planning and
controlling
constant ratio method of forecasting - ANSWER-a forecast approach using
the precent of sales method in which expense items on a firm's income
statement are expected to grow at the same rates as sales
cost of sales - ANSWER-all of the direct costs associated with producing or
delivering a product or service, including the material costs and direct labor
costs
current assets - ANSWER-cash plus items that are readily convertible to
cash, such as accounts receivable, inventories, and marketable securities
current liabilities - ANSWER-obligations that are payable within a year,
including accounts payable, accrued expenses and the current portion of
long-term debt
current ratio - ANSWER-a ratio that equals the firm's current assets divided
by its current liabilities
debt-to-equity ratio - ANSWER-a ratio calculated by dividing the firm's long-
term debt by its shareholders' equity
efficiency - ANSWER-how productively a firm utilizes its assets relative to its
rate of return
financial management - ANSWER-the process of raising money and managing
a company's finances in a way that achieves the highest rate of return
,EEE 2022/2023 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS ASSUARED SUCCESS A+
financial ratios - ANSWER-ratios showing the relationship between items on a
firm's financial statements that are used to discern whether a firm is meeting
its financial objectives and how it stacks up against industry peers
financial statement - ANSWER-written reports that quantitatively describe a
firm's financial health
financing activities - ANSWER-activities that raise cash during a certain period
by borrowing money or selling stock, and/or use cash during a certain period
by paying dividends, buying back outstanding stock, or buying back
outstanding bonds
fixed assets - ANSWER-assets used over a longer time frame, such as real
estate, buildings, equipment and furniture
forecasts - ANSWER-estimates of a firm's future income and expenses,
based on its past performance, its current circumstances and its future
plans
historical financial statements - ANSWER-reflect past performances and are
usually prepared on a quarterly and annual basis
income statement - ANSWER-a financial statement that reflects the results
of the operations of a firm over a specified period of time: prepared on a
monthly, quarterly, and annual basis
inventory - ANSWER-a company's merchandise, raw materials, and products
waiting to be sold
investing activities - ANSWER-activities that include the purchase, sale or
investment in fixed assets, such a real estate or buildings
liquidity - ANSWER-the ability to sell a business or other assets quickly at a
price that is close to market value; also, a company's ability to meet its
short-term financial obligations
long-term liabilities - ANSWER-notes or loans that are repayable beyond one
year, including liabilities associated with purchasing real estate, buildings and
equipment
net sales - ANSWER-total sales minus allowances for returned goods and
discounts
operating activities - ANSWER-activities that affect net income (or loss),
depreciation, and changes in current assets and current liabilities other than
cash and short-term debt
operating expenses - ANSWER-marketing, administrative costs, and other
expenses not directly related to producing a product or service
, EEE 2022/2023 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS ASSUARED SUCCESS A+
other assets - ANSWER-miscellaneous assets including accumulated goodwill
