Chapter 1 Flashcards
1
Q
Assets
A
Liabilities + Equity
2
Q
Liabilities + equity
A
Assets
3
Q
Market value of equity
A
Share price x number of shares
4
Q
Share price x number of share
A
Market value of equity
5
Q
Net sales
A
Gross sales - deductions
6
Q
Gross sales - deductions
A
Net sales
7
Q
Deductions
A
Customer discounts + returns + allowances
8
Q
Gross profit
A
Net sales - cost of goods sold
9
Q
Operating profit
A
Gross profit - indirect costs
10
Q
What does EBITDA stand for?
A
Earnings before interest, taxes, depreciation and amortization
11
Q
EBITDA=
A
Operation profit + other income
12
Q
EBIT
A
EBITDA-depreciation and amortization
13
Q
EBT
A
EBIT - interest
14
Q
Book value
A
Acquisition cost - (accumulated) depreciation
