Peregrine Exam Finance
RETAINED EARNINGS
Begin retained earnings + Profit/losses- Dividents - answersAn amount earned by a
corporation and not yet distributed to stockholders.
Inventory turnover ratio
COGS/ Average Inventory - answersratio showing how many times a company has sold
and replaced inventory during a given period.
ROA - answersmetric that measures the profitability of a business in relation to its total
assets. This ratio indicates how well a company is performing by comparing the profit
(net income) it's generating to the capital it's invested in assets.
INCOME STATEMENTS - answersA report summarizing a firm's revenues, expenses,
and profits during a reporting period, generally a quarter or a year.
OPERATING MARGINS
Equal to operating income divided by revenue - answersa profitability ratio measuring
revenue after covering operating and non-operating expenses of a business. Also
referred to as return on sales, the operating income is the basis of how much of the
generated sales is left when all operating expenses are paid off.
Reporting - answersthe financial results of an organization are released to the public.
The key function of the controller.
current ratio = current assest / current liabilities - answersmeasures the capability of a
business to meet its short-term obligations that are due within a year.
RETAINED EARNINGS
Begin retained earnings + Profit/losses- Dividents - answersAn amount earned by a
corporation and not yet distributed to stockholders.
Inventory turnover ratio
COGS/ Average Inventory - answersratio showing how many times a company has sold
and replaced inventory during a given period.
ROA - answersmetric that measures the profitability of a business in relation to its total
assets. This ratio indicates how well a company is performing by comparing the profit
(net income) it's generating to the capital it's invested in assets.
INCOME STATEMENTS - answersA report summarizing a firm's revenues, expenses,
and profits during a reporting period, generally a quarter or a year.
OPERATING MARGINS
Equal to operating income divided by revenue - answersa profitability ratio measuring
revenue after covering operating and non-operating expenses of a business. Also
referred to as return on sales, the operating income is the basis of how much of the
generated sales is left when all operating expenses are paid off.
Reporting - answersthe financial results of an organization are released to the public.
The key function of the controller.
current ratio = current assest / current liabilities - answersmeasures the capability of a
business to meet its short-term obligations that are due within a year.
