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Business Finance Quiz Flashcards

1
Q

What is another name for the Income Statement?

A

Profit and Loss (P&L) statement

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2
Q

What are the three main sections of an Income Statement?

A
  • Revenue
  • Expenses
  • Net Income
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3
Q

How can the Income Statement be broken down?

A
  • Divisions
  • Brands
  • Operating companies
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4
Q

What is the top line of the Income Statement?

A

Revenues

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5
Q

What is the bottom line of the Income Statement?

A

Net income

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6
Q

What must the Balance Sheet reflect?

A

A balance among its various elements

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7
Q

What are the three main elements of a Balance Sheet?

A
  • Assets
  • Liabilities
  • Shareholder equity
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8
Q

What does positive shareholder equity indicate?

A

A strong business

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9
Q

What is the focus of the Cash Flow Statement?

A

The flow of cash in and out of a business

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10
Q

What are the two methods of preparing a Cash Flow Statement?

A
  • Direct method
  • Indirect method
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11
Q

Which method of the Cash Flow Statement is most common?

A

Indirect method

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12
Q

What are the three sections of the Cash Flow Statement?

A
  • Cash from operations
  • Cash from investing activities
  • Cash from financing activities
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13
Q

The best way to increase profit is to grow the _________________

A

top-line

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14
Q

What is the formula for profit margin?

A

(price - cost) / price or (revenue - expenses) / Revenue

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15
Q

When did Johnny Carson host the Tonight Show?

A

1962-1992

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16
Q

Who was Johnny Carson’s sidekick?

A

Ed McMahon

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17
Q

What was the name of Johnny Carson’s band leader?

A

Doc Severinsen

18
Q

What was the focus of Johnny Carson’s show?

A

The biggest stars of entertainment, politics, and sports

19
Q

What is Corporate Finance?

A

The planning, organizing, leading, and controlling of the monetary activities of an enterprise

20
Q

What activities are included in Corporate Finance?

A
  • Budgeting
  • Procurement (purchasing)
  • Profit-sharing (shareholders/employees)
  • Debt assumption
  • Accounting
21
Q

What is the goal of financial management?

A

Maximizing a business’s financial performance through proper financial activities

22
Q

What does financial performance equate to?

A

Profitability and shareholder value

23
Q

the best way to impact the bottom line is to grow the _______________

24
Q

Accounting:

A
  • it is a science
  • backward - looking
  • prepares financial statements and makes sure they’re right
  • tactical
25
Finance:
- it's an art - forward looking - uses financial information to make decisions that impact the company - strategic
26
The primary financial control of a business is the ___________
budget
27
Various types of budgets
- Sales / revenue budgets - production - expense budget - capital expenditures - master budget
28
Three stages of budgetary control
- establishing expectations - performing operations - taking action
29
Budgets serve as a continual point of reference for the business to understand its level of ____________
success
30
Budgets do or don't change?
they normally don't change
31
The father of modern accounting is __________ ________
Luca Pacioli
32
Accounting is the process of recording...
financial transactions pertaining to a business
33
The accounting process includes
- summarizing - analyzing - reporting transactions to oversight agencies
34
Two common accounting functions:
- Accounting payable - Accounts receivable
35
Types of accounting
- Financial accounting - Managerial accounting - cost accounting - tax accounting
36
What does GAAP stand for?
Generally accepted accounting principles
37
Whats the standard for accounting?
GAAP Accounting
38
The principles that are designed to create a standard to protect the following...
- shareholders - potential investors - governments
39
Always underestimate your ___________
revenues
40
Always overestimate your _____________
expenses

Business (7 decks)

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