COMM 217 Midterm

Question 1

current asset

Answer 1

all company-owned assets that can be converted to cash within one year ( cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.)

Question 2

non current assets

Answer 2

a company’s long-term investments that are not easily converted to cash or are not expected to become cash within an accounting year. land; property, plant, and equipment

Question 3

Current Liabilities

Answer 3

debts a company must pay within a normal operating cycle, usually less than 12 months. accounts payable, short-term debt, dividends, and notes payable as well as income taxes owed

Question 4

Non-current liabilites

Answer 4

financial obligations of a company that are not expected to be settled within one year. Examples of non-current liabilities include long-term leases, bonds payable, and deferred tax liabilities.

Question 5

Shareholder equity

Answer 5

a company’s net worth and it is equal to the total dollar amount that would be returned to the shareholders if the company must be liquidated and all its debts are paid off.

Question 6

Revenue

Answer 6

Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold.

Question 7

Expense

Answer 7

an expense refers to any cost that contributes to a company’s overall cost of doing business. That is, any costs incurred as a result of a company’s attempted or successful revenue production. Expenses may include cash, cash equivalents, and depreciation.