Chapter 3 Flashcards

1
Q

Business can be said to engage in three fundamental types of activities. Its day-to-day core business would be called its ____1____ activities. These are the activities by which the firm earns money. In order to stay in business, the firm needs long term productive assets. Obtaining these assets would comprise its ____2____ activities. Finally, in order to make these investments, the firm needs to raise __3___ by engaging in ___4____
activities.

A

1) operating
2) investing
3) cash
4) financing

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2
Q

Long Term Liabilities

A) Operating
B) Investing
C) Financing

A

C) Financing

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3
Q

Current Assets

A) Operating
B) Investing
C) Financing

A

A) Operating

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4
Q

Current Liabilities

A) Operating
B) Investing
C) Financing

A

A) Operating

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5
Q

Equity

A) Operating
B) Investing
C) Financing

A

C) Financing

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6
Q

Long Term Investments

A) Operating
B) Investing
C) Financing

A

B) Investing

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7
Q

Property, Plant and Equipment

A) Operating
B) Investing
C) Financing

A

B) Investing

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8
Q

Expenses

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

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9
Q

Distributions

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

C) Statement of Stockholders Equity

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10
Q

Assets

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

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11
Q

Gains

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

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12
Q

Revenues

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

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13
Q

Liabilities

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

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14
Q

Contributions

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

C) Statement of Stockholders Equity

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15
Q

Losses

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

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16
Q

Equity

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

17
Q

Earnings Quality

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

18
Q

Total Debt

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

19
Q

Earnings

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

20
Q

Free cash Flow

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

A) Statement of Cash Flows

21
Q

Liquidity

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

22
Q

New common stock
issued

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

C) Statement of Stockholders Equity

23
Q

Beta

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

E) None of the above

24
Q

Cash flows from investing activities

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

A) Statement of Cash Flows

25
Q

Operating Income

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

26
Q

Working Capital

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

27
Q

EBIT

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

28
Q

Financial Leverage

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

B) Balance Sheet

29
Q

Earnings per share

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

D) Income Statement

30
Q

Market value per share

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

E) None of the above

31
Q

Cash flows from operating activities

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

A) Statement of Cash Flows

32
Q

Future cash flows

A) Statement of Cash Flows
B) Balance Sheet
C) Statement of Stockholders Equity
D) Income Statement
E) None of the above
A

E) None of the above

33
Q

Operating Income which is also ___1___ is ___________2______________.

A

1) EBIT

2) Earnings from operations before interest and taxes

34
Q

What is EBITDA?

A

Earnings before interest, taxes, depreciation, and

amortization.

35
Q

Analysts often refer to __1___ which is an approximation of _____2_____ . They also refer to something called EBITDA, which is an approximation of _____3____.

A

1) EBIT
2) Operating Income
3) Cash flows from Operating Activities

36
Q

What is GAAP?

A

U.S. Generally Accepted Accounting Standards