EEE 2023 Final Exam Questions with
correct answers
Accounts |Receivable |- |CORRECT |ANSWER✔✔-the |money |owed |to |a |firm |by |its |customers
assumption |sheet |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-a |snapshot |of |a |company's |assets, |liabilities |and |
owner's |equity |at |a |specific |point |in |time
break-even |point |- |CORRECT |ANSWER✔✔-the |point |where |total |revenue |received |equals |total |
costs |associated |with |the |output
budgets |- |CORRECT |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 |- |CORRECT |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 |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-cash |plus |items |that |are |readily |convertible |to |cash, |
such |as |accounts |receivable, |inventories, |and |marketable |securities
current |liabilities |- |CORRECT |ANSWER✔✔-obligations |that |are |payable |within |a |year, |including |
accounts |payable, |accrued |expenses |and |the |current |portion |of |long-term |debt
,current |ratio |- |CORRECT |ANSWER✔✔-a |ratio |that |equals |the |firm's |current |assets |divided |by |
its |current |liabilities
debt-to-equity |ratio |- |CORRECT |ANSWER✔✔-a |ratio |calculated |by |dividing |the |firm's |long-term
|debt |by |its |shareholders' |equity
efficiency |- |CORRECT |ANSWER✔✔-how |productively |a |firm |utilizes |its |assets |relative |to |its |rate
|of |return
financial |management |- |CORRECT |ANSWER✔✔-the |process |of |raising |money |and |managing |a |
company's |finances |in |a |way |that |achieves |the |highest |rate |of |return
financial |ratios |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-written |reports |that |quantitatively |describe |a |
firm's |financial |health
financing |activities |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-assets |used |over |a |longer |time |frame, |such |as |real |estate,
|buildings, |equipment |and |furniture
forecasts |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-reflect |past |performances |and |are |
usually |prepared |on |a |quarterly |and |annual |basis
income |statement |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-a |company's |merchandise, |raw |materials, |and |products |
waiting |to |be |sold
investing |activities |- |CORRECT |ANSWER✔✔-activities |that |include |the |purchase, |sale |or |
investment |in |fixed |assets, |such |a |real |estate |or |buildings
liquidity |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-notes |or |loans |that |are |repayable |beyond |one |
year, |including |liabilities |associated |with |purchasing |real |estate, |buildings |and |equipment
net |sales |- |CORRECT |ANSWER✔✔-total |sales |minus |allowances |for |returned |goods |and |
discounts
operating |activities |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-marketing, |administrative |costs, |and |other |
expenses |not |directly |related |to |producing |a |product |or |service
correct answers
Accounts |Receivable |- |CORRECT |ANSWER✔✔-the |money |owed |to |a |firm |by |its |customers
assumption |sheet |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-a |snapshot |of |a |company's |assets, |liabilities |and |
owner's |equity |at |a |specific |point |in |time
break-even |point |- |CORRECT |ANSWER✔✔-the |point |where |total |revenue |received |equals |total |
costs |associated |with |the |output
budgets |- |CORRECT |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 |- |CORRECT |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 |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-cash |plus |items |that |are |readily |convertible |to |cash, |
such |as |accounts |receivable, |inventories, |and |marketable |securities
current |liabilities |- |CORRECT |ANSWER✔✔-obligations |that |are |payable |within |a |year, |including |
accounts |payable, |accrued |expenses |and |the |current |portion |of |long-term |debt
,current |ratio |- |CORRECT |ANSWER✔✔-a |ratio |that |equals |the |firm's |current |assets |divided |by |
its |current |liabilities
debt-to-equity |ratio |- |CORRECT |ANSWER✔✔-a |ratio |calculated |by |dividing |the |firm's |long-term
|debt |by |its |shareholders' |equity
efficiency |- |CORRECT |ANSWER✔✔-how |productively |a |firm |utilizes |its |assets |relative |to |its |rate
|of |return
financial |management |- |CORRECT |ANSWER✔✔-the |process |of |raising |money |and |managing |a |
company's |finances |in |a |way |that |achieves |the |highest |rate |of |return
financial |ratios |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-written |reports |that |quantitatively |describe |a |
firm's |financial |health
financing |activities |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-assets |used |over |a |longer |time |frame, |such |as |real |estate,
|buildings, |equipment |and |furniture
forecasts |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-reflect |past |performances |and |are |
usually |prepared |on |a |quarterly |and |annual |basis
income |statement |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-a |company's |merchandise, |raw |materials, |and |products |
waiting |to |be |sold
investing |activities |- |CORRECT |ANSWER✔✔-activities |that |include |the |purchase, |sale |or |
investment |in |fixed |assets, |such |a |real |estate |or |buildings
liquidity |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-notes |or |loans |that |are |repayable |beyond |one |
year, |including |liabilities |associated |with |purchasing |real |estate, |buildings |and |equipment
net |sales |- |CORRECT |ANSWER✔✔-total |sales |minus |allowances |for |returned |goods |and |
discounts
operating |activities |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-marketing, |administrative |costs, |and |other |
expenses |not |directly |related |to |producing |a |product |or |service
