Accounting Principles
What do we call money a business receives from customers?
What is revenue?
Name 3 profitability ratios?
What is gross profit margin, profit margin, net profit margin, return on assets, return on equity?
What do we call a plan that estimates future income and expenses for a business?
What is a budget?
What financial statement shows a company’s assets, liabilities, and equity?
What is the balance sheet?
What happens when DSO is higher than DPO?
What is interests get accumulated because we're taking longer to collect money than we pay to our suppliers.
What type of budget is updated regularly to reflect changes in business conditions?
What is a forecast?
How are the three financial statements connected?
What is first in the P&L where we get the net the income, then it goes in the cash flow that ends with the cash at the end of the period and the balance sheet shows that cash.
A company has average accounts receivable of $500,000 and annual credit sales of $3.65 million. Using a 365-day year, what is its DSO?
What is 50 days?
A company’s original annual revenue budget was $1.2 million. After six months, actual revenue was $540,000, and management revised its estimate for the remaining six months to $720,000. What is the revised full-year revenue forecast, and how does it compare with the original budget? What type of variance occurs when actual costs are higher than expected costs?
What is $1.26 million, which is $60,000—or 5%—above budget?