IMA Jeopardy

Financial Statements

100

This statement provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.

What is the Balance Sheet?

200

This statement reports a company's financial performance over a specific accounting period, detailing revenues and expenses.

What is the Income Statement (or Profit & Loss Statement)?

300

This statement breaks down a company's cash inflows and outflows into operating, investing, and financing activities.

What is the Statement of Cash Flows?

400

Dividends paid out to shareholders are deducted from net income to calculate this line item, which has its own statement.

What are Retained Earnings?

500

This specific section of stockholders' equity is used to report unrealized gains and losses that bypass the income statement, such as foreign currency translation adjustments and pension plan gains.

What is Accumulated Other Comprehensive Income (AOCI)?

Financial Ratios

100

This basic liquidity ratio is calculated simply by dividing a company's total current assets by its total current liabilities.

What is the Current Ratio?

200

Calculated by dividing gross profit by net sales, this margin reveals the percentage of revenue left after covering the cost of goods sold.

What is the Gross Profit Margin?

300

This strict liquidity metric, frequently called the "acid-test," excludes inventory from current assets before dividing by current liabilities

What is the Quick Ratio?

400

This heavily scrutinized metric is calculated by taking net income minus preferred dividends, and dividing that result by the weighted average number of common shares outstanding.

What is Earnings Per Share (EPS)?

500

The DuPont analysis framework famously breaks down this specific profitability ratio into three distinct components: operating efficiency, asset use efficiency, and financial leverage.

What is Return on Equity (ROE)?

Accounting Acronyms

100

CMA

What is Certified Management Accountant?

200

GAAP

What are Generally Accepted Accounting Principles?

300

FASB

What is Financial Accounting Standards Board?

400

IFRS

What is International Financial Reporting Standards?

500

EBITDA

What is Earnings Before Interest, Taxes, Depreciation, and Amortization?

Accounting Principles

100

This basis of accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands.

What is the Accrual Accounting?

200

This principle requires that expenses be reported in the same accounting period as the revenues they helped to generate.

What is the Matching Principle?

300

This principle states that a company should record its assets at their original purchase price rather than current market value.

What is the Historical Cost Principle?

400

This principle assumes a business will continue to operate indefinitely and will not be forced to liquidate.

What is the Going Concern Assumption?

500

This concept dictates that when choosing between two acceptable accounting methods, the one that results in lower net income or lower asset value should be selected.

What is Conservatism?

Managerial Accounting

100

These are costs that remain constant in total regardless of the volume of production, such as factory rent.

What are Fixed Costs?

200

This is the exact level of sales volume at which total revenues equal total costs, resulting in a net income of zero.

What is the Break-Even Point?

300

This type of cost is a sunk cost that has already been incurred and cannot be recovered, meaning it should be ignored in future decision-making.

What is a Sunk Cost?

400

Direct materials, direct labor, and manufacturing overhead make up the three main components of this.

What is Product Cost (or Manufacturing Cost)?

500

This financial analysis method involves evaluating a financial statement by expressing each item as a percentage of a base amount, like total assets or net sales.

What is Vertical Analysis (or Common-Size Analysis)?