Business income, revenue, etc
Which term correctly completes the definition? Operating __________ are ________ directly associated with operating a business.
Goods, expenses, sales, categories
expenses
The process of recording, maintaining, and reporting an organization’s financial transactions and records is:
accounting
What focuses on the management of the assets, liabilities, equity, and cash flow of an organization, analysis of ROI and ROE, and planning of future growth?
finance
What compares financial data from one time period to another?
horizontal analysis
Gross Profit minus Operating Expenses equals:
operating income
The double entry-accounting is used to ensure the “accounting equation” is always _____________.
accurate
Money used to make an investment, produce a product, fund operations, and generate income is:
capital
A financial statement that marks a company's financial situation at a moment in time, showing all assets, liabilities and owners’ equity is a:
balance sheet
The financial gain earned when the revenue generated from a business exceeds all the expenses associated with achieving that revenue, over a certain time period is:
profit
In a double-entry accounting world, total debits need ___________ total credits.
be more than, equal, be less than, to be subtracted from
equal!
The cash conversion cycle is the length of time, measured in ___________, that it takes a company to convert its investment in inventory into cash.
days
What is used to measure the amount of debt as compared to other important accounts, like equity, assets, and earnings?
leverage ratio
How is Gross Profit calculated?
Revenue minus Cost of Goods Sold
The process of recording and processing a company’s financial transactions over a specific period of time is the:
accounting cycle
Items that can be converted to cash within one year’s time are:
current assets
What term is used to describe a person or company that can no longer pay money that is owed; when the total value of debts exceeds the total value of assets?
insolvent
An estimate or projection of future revenues, expenses, net income, and capital needed to fund the company’s operations is a:
proforma
What is the accounting equation?
assets = liabilites + SE
What financial statements do accounting and finance professionals spend a lot of time looking at? Select THREE options. (Balance sheet, income statement, working capital, statement of current liabilites, statement of cash flows. )
Balance sheet, income statement, cash flows!
What term is used to describe the use of the least amount of inputs to generate the highest amount of outputs?
efficiency