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SBE Financials Section 2 (Biz U 5-4)
Questions and Answers (Expert Solutions)
Q: Balance Sheet
ANS 🗹🗹: A financial statement that marks a company's financial situation at a
moment in time, showing all assets, liabilities and owners' equity.
Q: Efficiency
ANS 🗹🗹: strives to use the least amount of inputs to generate the highest amount
of outputs.
Q: Financial Analysis
ANS 🗹🗹: To evaluate the financial well-being and invest-ability of a business and
its various financial transactions, based on profitability, stability, liquidity, rates of
return, and other financial measures of success.
Q: Financial Planning and Analysis (FP&A)
ANS 🗹🗹: Involves budgeting, forecasting, planning, and analysis of financial
information of an organization so that decision makers can make informed
decisions.
Q: Horizontal Analysis
ANS 🗹🗹: Compares financial data from one time period to another.
Q: Insolvent
ANS 🗹🗹: When a person or company can no longer pay the money it owes; when
the total value of debts exceeds the total value of assets.
Q: Leverage Ratio
ANS 🗹🗹: Used to measure the amount of debt as compared to other important
accounts, like equity, assets, and earnings.
SBE Financials Section 2 (Biz U 5-4)
Questions and Answers (Expert Solutions)
Q: Balance Sheet
ANS 🗹🗹: A financial statement that marks a company's financial situation at a
moment in time, showing all assets, liabilities and owners' equity.
Q: Efficiency
ANS 🗹🗹: strives to use the least amount of inputs to generate the highest amount
of outputs.
Q: Financial Analysis
ANS 🗹🗹: To evaluate the financial well-being and invest-ability of a business and
its various financial transactions, based on profitability, stability, liquidity, rates of
return, and other financial measures of success.
Q: Financial Planning and Analysis (FP&A)
ANS 🗹🗹: Involves budgeting, forecasting, planning, and analysis of financial
information of an organization so that decision makers can make informed
decisions.
Q: Horizontal Analysis
ANS 🗹🗹: Compares financial data from one time period to another.
Q: Insolvent
ANS 🗹🗹: When a person or company can no longer pay the money it owes; when
the total value of debts exceeds the total value of assets.
Q: Leverage Ratio
ANS 🗹🗹: Used to measure the amount of debt as compared to other important
accounts, like equity, assets, and earnings.
