SPMA 2P27 QUESTIONS AND ANSWERS
What are the two types of Accounting? - Answer -Financial Accounting: External
Managerial Accounting: Internal
Sport Organizations Typically use what type of accounting? - Answer -Financial
Accounting
What is the basic equation for a balance sheet? - Answer -Assets = Liabilities + Equity
What are the 4 categories of assets? - Answer -1. Current
2. Fixed
3. Inventory
4. Employees
What are tangible assets? - Answer -Assets that can be visibly seen or physically
touched.
What are intangible assets? - Answer -Assets that cannot be visibly seen or physically
touched.
What is cash? - Answer -Capital in an organization bank account(s) or on hand (e.g.,
petty cash).
What is PPE? - Answer -property, plant, and equipment.
Things that are not applicable on a balance sheet? - Answer -- The value of a brand
image.
- A well-known win-loss record.
- The historical significant of a team for a city/region.
- Employee training making workers more efficient.
- A process or strategy developed/implemented by the organization to be more efficient.
What are the two types of liabilities? - Answer -Current: Debts owed in a short-time
period, typically within a year.
Long-Term: Debts owed in more than one year.
True or False? Financial Ratios are typically used when interested in equity or estate in
a franchise. - Answer -True!
What is the current ratio? - Answer -total current assets/total current liabilities
What is the ideal range of a current ratio? - Answer -2:1
What are the two types of Accounting? - Answer -Financial Accounting: External
Managerial Accounting: Internal
Sport Organizations Typically use what type of accounting? - Answer -Financial
Accounting
What is the basic equation for a balance sheet? - Answer -Assets = Liabilities + Equity
What are the 4 categories of assets? - Answer -1. Current
2. Fixed
3. Inventory
4. Employees
What are tangible assets? - Answer -Assets that can be visibly seen or physically
touched.
What are intangible assets? - Answer -Assets that cannot be visibly seen or physically
touched.
What is cash? - Answer -Capital in an organization bank account(s) or on hand (e.g.,
petty cash).
What is PPE? - Answer -property, plant, and equipment.
Things that are not applicable on a balance sheet? - Answer -- The value of a brand
image.
- A well-known win-loss record.
- The historical significant of a team for a city/region.
- Employee training making workers more efficient.
- A process or strategy developed/implemented by the organization to be more efficient.
What are the two types of liabilities? - Answer -Current: Debts owed in a short-time
period, typically within a year.
Long-Term: Debts owed in more than one year.
True or False? Financial Ratios are typically used when interested in equity or estate in
a franchise. - Answer -True!
What is the current ratio? - Answer -total current assets/total current liabilities
What is the ideal range of a current ratio? - Answer -2:1
