Financial statements
Why is depreciation considered a special type of expense in Accounting?
Non-Cash expense
If a company has Gross Profit of $250,000 and Revenue of $2,000,000, what is its Gross Margin Percentage?
12.5%
If a company is currently selling 200,000 units and its BEP in units is 130,000 units. Its margin of safety is how many units?
70,000 units
What is the decision rule for accepting a project under the NPV method?
Accept if NPV is positive. Reject if NPV is negative.
Longest river in the world
Nile River
The correct date format on top of a balance sheet
as of mm, dd,yy.
If a company's Gross Profit Margin decreases from 40% to 35% while sales volume remains constant, the most likely cause is
increase in COGS
What is the formula for BEP in units
FC/CM per unit
What is the main limitation of the payback period method in capital budgeting?
It ignores time value of money
hat is the most widely spoken language in the world by number of native speakers?
Mandarin Chinese
The statement that describes the financial position of a company
Balance Sheet
What is the term used to describe the ability of the company to pay its current liabilities
Liquidity
A company sells a product for EGP 500 per unit. Variable cost per unit is EGP 320 and total fixed costs are EGP 720,000. How many units must be sold to earn a target profit of EGP 180,000
5,000 units
What happens to the present value of a future cash flow when the discount rate increases?
It decreases
This tech giant was originally called "BackRub" when it was founded in 1996.
If a company has been profitable for 10 years but has never paid a dividend, this specific part of Shareholders' Equity would be called
Retained Earnings
What is the strictest measure of liquidity
Quick Ratio (Acid-Test Ratio)
“Can a cost be both direct and variable at the same time? Give an example type of cost that fits this.”
Direct Material.
Direct Labor.
What term describes the process of converting future cash flows into today’s value?
Discounting
This 2013 film starring Leonardo DiCaprio was based on the real-life story of corrupt stockbroker Jordan Belfort and his "pump and dump" scheme
Wolf of Wall Street
At the start of 2024, 'Innovate Corp.' had Retained Earnings of $2,500,000. During the year, they reported Net Income of $800,000, paid cash dividends of $350,000 They also discovered an error in 2023's books, understating depreciation expense by $50,000 . What is the correct ending balance of Retained Earnings as of December 31, 2024
$2,900,000
What does a negative cash conversion cycle indicate?
A negative cash conversion cycle (CCC) means the company receives cash from customers before it pays its suppliers.
Maintenance costs for factory machines increase with usage but cannot be traced to individual units. How are they classified?
Indirect Variable Costs
What three elements are required to calculate NPV?
Cash Flows, Initial Investment, Interest Rate and time period.
When did WWII end?
Sep 2, 1945