Choose the synonym, according to the chapter
profit center (A profit center is a division within a company that generates money)
a. information technology
b. business unit
c. human resources
d. cost center
e. accounting
business unit
The money that remains after fixed and variable expenses have been deducted
a. depreciation & amortization
b. cost of goods sold (COGS)
c. earnings before interest and tax (EBIT)
d. earnings before taxes (EBT)
e. gross margin
earnings before interest and tax (EBIT)
margin per unit
Ex: Margin per unit is the revenue left over after variable expenses divided by the number of units produced
Total margin is the expense left over after variable expenses have been added.
Total margin is the revenue left over after variable expenses have been deducted
a. A _____ is a company that sells products to retailers
b. The sales team offered an early payment discount to any _____ who paid their invoices within ten days
a. A wholesaler is a company that sells products to retailers
b. The sales team offered an early payment discount to any wholesalers who paid their invoices within ten days
forgery (A forgery is an illegal copy of something)
a. manipulation
b. authenticity
c. counterfeiting
d. validity
e. misrepresentation
counterfeiting[1]
[1] falsificacion
A bribe paid in exchange for favorable treatment.
a. refund
b. shoplift
c. misappropriation.
d. kick-back
e. falsification
kick-back
pilfering
Ex: After tracking unexplained discrepancies in the supply chain, the employer terminated two staff members for pilfering company tools
The startup went bankrupt after the chief financial officer committs corporate embezzlement by transfered investor coins into an private account
The startup went bankrupt after the chief financial officer committed corporate embezzlement by transferring investor money into a private account
a. _____ is the act of lying or intentionally misleading
b. The CFO was terminated after an internal audit uncovered a complex scheme of _____
a. Deceit is the act of lying or intentionally misleading[1]
b. The CFO was terminated after an internal audit uncovered a complex scheme of deceit
[1] engañar
advance payment (An advance payment is a payment that is given before the product or service is exchanged)
a. prepayment
b. payment in arrears
c. retainage
d. deferred payment
e. accrual
prepayment
An accounting method in which noncash transactions are recorded
a. IFRS (international financial reporting standards)
b. accrual basis accounting
c. hybrid accounting
d. cash basis accounting
e. GAAP (generally accepted accounting principles)
accrual basis accounting
prepaid expense asset
Ex: Because the company paid the annual premium upfront, the full amount was initially recorded as a prepaid expense asset
Legal fees will paid for ahead of time and were be amortized across the upcoming legal year
Legal fees were paid for ahead of time and will be amortized across the upcoming fiscal year
a. To _____ something is to assign it to a particular location
b. Management decided to _____ the recent equipment repair costs directly to Project Alpha
a. To allocate something is to assign it to a particular location
b. Management decided to allocate the recent equipment repair costs directly to Project Alpha
accrual (An accrual is an amount that is added to a quantity of something)
a. savings
b. expense
c. investment
d. postponement
e. accumulation
accumulation
Expenses such as bonuses and interest payments that are not due until some later date.
a. accrued expenses payable
b. prepaid expense
c. reserves
d. bills
e. bargains
accrued expenses payable
income tax payable
Ex: Income tax payable is the amount of tax that an organization owes a government for a certain year but is not required to pay until the following year
The compani will carry over the remaining budget into the previous quarter.
The company will carry over the remaining budget into the next quarter.
a. A _____ is the amount of time in which a debt is expected to be paid
b. Extending the _____ from 10 to 15 years lowers your required periodic payments but significantly increases the total interest expense incurred
a. A loan period is the amount of time in which a debt is expected to be paid
b. Extending the loan period from 10 to 15 years lowers your required periodic payments but significantly increases the total interest expense incurred
pay off (To pay off a loan is to repay the total amount of it plus any interest)
a. borrow
b. liquidate
c. incur
d. lose
e. contract
liquidate
To borrow money
a. capture
b. grab
c. furnish
d. lend
e. take out
take out
tax deductible
Ex: If something is tax deductible, its value can be subtracted from its owner's taxable income
If you default on your car loan, the debtor was take your car back.
If you default on your car loan, the bank will take your car back
a. To _____ something is to use it as collateral to get a loan
b. By taking out a $500,000 commercial mortgage, the firm increased its financial _____
a. To leverage something is to use it as collateral to get a loan
b. By taking out a $500,000 commercial mortgage, the firm increased its financial leverage