Economics
Accounting
100
When decisions about what and how much to produce are made by the market, we call that a...?
Free Market
100
True or False: An accountant's work primarily consists of personal financial planning.
False
200
Name the three key financial statements.
Income Statement, Balance Sheet, and Statement of Cash Flows
300
If I were to tell you that the inventory turnover for Company X is 14, what does that mean?
Company X's inventory is sold and replaced 14 times during the course of a period.
400
Can net profit be thought of as cash? Why?
No. Businesses can sell products on credit, meaning they record revenue, but do not receive any cash for the purchase.
500
What is the formula that is used to calculate net income in the income statement?
Revenue Minus Cost of Goods Sold Equals Gross Profit Minus Operating Expenses Equals Net Income before Taxes Minus Taxes Equals Net Income or Net Loss
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