Quantic MBA – Accounting Questions With All Correct Answers

Quantic MBA – Accounting Questions With All
Correct Answers

CAPEX correct answer -Capital Expenditures

CAPM correct answer -Capital Asset Pricing Model

COGS correct answer -cost of goods sold

is the expense account associated with the sale of inventory.

Cr. correct answer -Credit

DCF correct answer -discounted cash flow

D/E Ratio correct answer -Debt to Equity Ratio

Dr. correct answer -Debt

EBIT correct answer -Earnings before interest and taxes. Also known as
operating profit.

EBITDA correct answer -Earnings before interest, taxes, depreciation, and
amortization.

This is a measurement of earnings strictly from an entity's operations.

EBT correct answer -earnings before taxes

FCFE correct answer -Free Cash Flow to Equity

FCFF correct answer -Free Cash Flow to the Firm

FIFO correct answer -first in first out
is the method of accounting for the cost of inventory by expensing the cost of
the oldest inventory first.

FV correct answer -future value

,GAAP correct answer -Generally Accepted Accounting Principles (the
accounting standards and rules for most US companies)

IFRS correct answer -International Financial Reporting Standards (the
accounting standards and rules for most NON-US companies)

IPO correct answer -Initial Public Offering

IRR correct answer -internal rate of return

LIFO correct answer -last in first out
is the method of accounting for the cost of inventory by expensing the cost of
the newest inventory first.

NCD correct answer -Negotiable certificate of deposit

NOPAT correct answer -Net Operating Profit After Taxes

𝚫WC correct answer -Net Working Capital

P/E Ratio correct answer -Price Earnings Ratio

PP&E correct answer -property, plant, and equipment

PV correct answer -Present Value

R&D correct answer -research and development

ROA correct answer -Return on Assets

SG&A correct answer -selling, general, and administrative expenses

Includes:
-Marketing & Advertising
-Salaries for employees NOT related to COGS
-Rent and utilities
-Insurance and legal fees

, WACC correct answer -weighted average cost of capital

YTM correct answer -yield to maturity

T-Accounts correct answer -are charts used to record increases and
decreases of individual accounts found on the balance sheet.

Are kept in the general ledger

Left side: Debit
Increase: Assets Expenses
Decrease: Liabilities, Equity and Revenue

Right side: Credit
Increase: Liabilities, Equity and Revenues
Decrease: Assets and Expenses

Accounts generally have positive balances, so assets normally have debit
balances and liability/equity will normally have credit balances

Revenues come in, Expenses go out. Both normally increase. Expense
increases go on the left, expense decreases go on the right. Revenue increases
go on the right, revenue decreases go on the left. Revenues and Expenses are
not on balance sheet, they are on the Income Statement

Debts correct answer -represent an increase in an asset but a decrease in a
liability or equity.

Credits correct answer --represent a decrease in an asset but an increase
in a liabilty or equity.
-Asset accounts will normally have debit balances.
-Liability & Equity accounts will normally have credit balances.

Revenues and Expenses correct answer --are temporary accounts.
-Revenues are increases in equity and usually have a credit balance.
-Expenses are decreases in equity and usually have a debit balance.
-Revenues are debited and credited like equity accounts, but Expenses are
debited and credited like asset accounts.