BA 101 MIDTERM CERTIFICATION SCRIPT
2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Revenue(Sales).
Answer: Number of units sold x Price
◉ Revenue.
Answer: Number of units sold x Price
◉ Operating Profit.
Answer: Profit from running the business, before paying interest and
taxes, shows how well your core operations are performing.
Calculated after subtracting both variable and fixed costs. Used to
compare performance across different companies and industries
◉ EBIT (Earnings Before Interest & Taxes).
Answer: This is the Operating Profit number carried forward from
the previous step.Shows how much your business earned from its
operations before subtracting interest and taxes
◉ Interest.
, Answer: "Rent" paid for borrowed Money
◉ Taxes.
Answer: Payment to government based on taxable income
◉ Profit Sharing.
Answer: to employees, often as bonuses or retirement contribution
◉ Net Profit.
Answer: The amount of money left after paying all expenses,
interest, and taxes It can be kept in the business as retained earnings
or paid to shareholders as dividends
◉ Asset equation.
Answer: Assets= liabilities + owners equity
◉ Debt Financing.
Answer: Borrow money from a financial institution, savings and
loan, etc.Borrow money from the market bonds
◉ Debt Financing.
Answer: Borrow from a Financial Institution, make an application,
and determine whether to make loan or not based on risk. The
2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Revenue(Sales).
Answer: Number of units sold x Price
◉ Revenue.
Answer: Number of units sold x Price
◉ Operating Profit.
Answer: Profit from running the business, before paying interest and
taxes, shows how well your core operations are performing.
Calculated after subtracting both variable and fixed costs. Used to
compare performance across different companies and industries
◉ EBIT (Earnings Before Interest & Taxes).
Answer: This is the Operating Profit number carried forward from
the previous step.Shows how much your business earned from its
operations before subtracting interest and taxes
◉ Interest.
, Answer: "Rent" paid for borrowed Money
◉ Taxes.
Answer: Payment to government based on taxable income
◉ Profit Sharing.
Answer: to employees, often as bonuses or retirement contribution
◉ Net Profit.
Answer: The amount of money left after paying all expenses,
interest, and taxes It can be kept in the business as retained earnings
or paid to shareholders as dividends
◉ Asset equation.
Answer: Assets= liabilities + owners equity
◉ Debt Financing.
Answer: Borrow money from a financial institution, savings and
loan, etc.Borrow money from the market bonds
◉ Debt Financing.
Answer: Borrow from a Financial Institution, make an application,
and determine whether to make loan or not based on risk. The
