Financial Markets
When analyzing a company's financial statements, what does the term "EBITDA" stand for?
Earnings Before Interest, Taxes, Depreciation, and Amortization
According to the double-entry accounting system, if a company purchases equipment on credit, which accounts are affected?
Debit Equipment, Credit Accounts Payable
In India farm credit is regulated by
NABARD
In cost accounting, direct labor costs are considered as
Prime costs
What international organization provides financial and technical assistance to developing countries for development projects?
World Bank
Which financial ratio measures a company's ability to meet short-term obligations with its most liquid assets?
Current Ratio
Which accounting principle states that expenses should be recognized in the same period as the revenue they help to generate?
Matching principle
What does the term "FDIC" stand for in the context of banking?
Federal Deposit Insurance Corporation
Which type of cost changes in total proportionally with the level of activity?
Variable cost
Which exchange rate system involves a country allowing its currency value to be determined by supply and demand in the foreign exchange market?
Floating exchange rate
Which financial instrument is considered the least liquid?
Penny stocks
How does the straight-line depreciation method calculate annual depreciation expense?
(Cost - Salvage Value) / Useful Life
When repayment of the loan is less than the loans accumulated interest, then what occurs ?
Negative Amortization
What is the formula for calculating the contribution margin ratio?
Sales - Variable Costs) / Sales
What is the term for a situation where a country's liabilities denominated in foreign currencies exceed its assets in foreign currencies, leading to potential solvency issues?
Sovereign debt crisis
What is the purpose of the Sharpe ratio in portfolio management?
Measure risk-adjusted return
In the context of financial statements, what does the term "comprehensive income" include?
Unrealized gains and losses
What is the purpose of the Federal Reserve's Open Market Operations?
Regulating interest rates
In absorption costing, which cost is included in the product cost?
Variable manufacturing overhead
Which country is known for having a large sovereign wealth fund primarily funded by its oil revenues?
Norway
In the context of technical analysis, what does the term "head and shoulders" refer to?
Chart pattern
How does the straight-line method of depreciation affect the income statement over time?
Constant depreciation expense
What is the Basel III framework primarily designed to address?
Liquidity risk
What is the formula for calculating the predetermined overhead rate?
Budgeted total manufacturing overhead / Budgeted activity level
Which economic theory suggests that exchange rates will adjust to ensure that identical goods cost the same in different countries when expressed in a common currency?
Purchasing Power Parity (PPP)