Types of Cost
An expense that has already been incurred and cannot be recovered.
Sunk Cost
True or False:
Ratio analysis is a method of examining a company's balance sheet and income statement to learn about its liquidity, operational efficiency, and profitability.
True
What type of bank account is safe from market volatility, earns a higher interest rate, and used to build wealth?
Savings Account
What is the governing body that collects and processes income tax in Canada?
Provide the full name and abbreviation.
CRA Canada Revenue Agency
A small amount of money a business keeps on hand to cover minor, everyday expenses
Petty Cash
Represents the potential benefits that are lost when choosing one option over another.
Opportunity Cost
A company has $100,100 in assets and $25,025 in liabilities. What is the current ratio?
4:1
What type of bank account is used to hold stocks, bonds, and mutual funds?
Investment Account
What is the income tax due date in Canada?
April 30
In accounting, if you make an error, what method must you used to correct it?
Cross-out and rewrite nearby
Expenses that are not immediately apparent or budgeted for, often arising from inefficiencies, oversights, or unexpected events.
Hidden Cost
A company has $2,280 in assets and $456 in liabilities. What is the current ratio?
5:1
In accounting, the chance that an event, situation, or market changes will lead to an unfavorable financial result.
Risk
What is the fastest way to file your taxes and have them arrive with the CRA expediently?
Online
C________, E___________, and F_________.
Convenience, Efficiency, and Flexibility
The change in total cost that comes from making or producing one additional item.
Marginal Cost
What is the quick ratio for?
A. Using least liquid assets for short term debts
B. Using least liquid assets for long term debts
C. Using most liquid assets for long term debts
D. Using most liquid assets for short term debts
D
The process of allocating capital in a way that reduces the exposure to any one particular asset. Investing with variety to reduce risk.
Diversification
What the two colours of income tax forms? and which colour is for provincial vs. federal?
Green Federal
The person who is responsible for controlling, distributing, and documenting the petty cash is called the....
Custodian
Ongoing expenses a business incurs to maintain and run its daily tasks.
Ongoing Cost
A company has $175,000 in assets and $100,000 in liabilities in 2022.
What is the current ratio for 2023 if the assets are 50% less and liabilities are 75% less.
7:1
What does ROI stand for in accounting?
Return on Investment
What is it called when a person falsifies records and claims, purposely not reporting income, inflating expenses, and claiming a fraudulent refund or benefit?
Tax Evasion or Tax Fraud
Name as many types of cost as you can among the 13 we have studied?
Bonus - What is the measures how quickly a company collects its receivables or money owed by clients.
Direct - Indirect - Startup - Fixed - Variable - Semi-Variable - Marginal - Product - Opportunity - Sunk - Operating - Hidden - Period
Accounts Receivable Turnover Ratio or A/R Turnover Ratio