Chapter 3 Flashcards
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.
1) operating
2) investing
3) cash
4) financing
Long Term Liabilities
A) Operating
B) Investing
C) Financing
C) Financing
Current Assets
A) Operating
B) Investing
C) Financing
A) Operating
Current Liabilities
A) Operating
B) Investing
C) Financing
A) Operating
Equity
A) Operating
B) Investing
C) Financing
C) Financing
Long Term Investments
A) Operating
B) Investing
C) Financing
B) Investing
Property, Plant and Equipment
A) Operating
B) Investing
C) Financing
B) Investing
Expenses
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Distributions
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
C) Statement of Stockholders Equity
Assets
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Gains
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Revenues
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Liabilities
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Contributions
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
C) Statement of Stockholders Equity
Losses
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Equity
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Earnings Quality
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Total Debt
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Earnings
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
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) Statement of Cash Flows
Liquidity
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
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
C) Statement of Stockholders Equity
Beta
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
E) None of the above
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) Statement of Cash Flows
Operating Income
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Working Capital
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
EBIT
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Financial Leverage
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Earnings per share
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
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
E) None of the above
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) Statement of Cash Flows
Future cash flows
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
E) None of the above
Operating Income which is also ___1___ is ___________2______________.
1) EBIT
2) Earnings from operations before interest and taxes
What is EBITDA?
Earnings before interest, taxes, depreciation, and
amortization.
Analysts often refer to __1___ which is an approximation of _____2_____ . They also refer to something called EBITDA, which is an approximation of _____3____.
1) EBIT
2) Operating Income
3) Cash flows from Operating Activities
What is GAAP?
U.S. Generally Accepted Accounting Standards
