FINANCIAL STATEMENT

Question 1

• it is a formal record summarizing financial performance and position over a specific period, essential for decision-making, financial analysis, and reporting to stakeholders.

Answer 1

FINANCIAL STATEMENT

Question 2

• a formal financial reports that summarize the financial activities and condition of the business.

Answer 2

ACCOUNTING STATEMENT

Question 3

• Reports Revenue, Expenses, and Profit over a specific period.

Answer 3

INCOME STATEMENT

Question 4

Summarizes the amount of cash and cash equivalents entering and leaving the company.

Answer 4

CASH FLOW STATEMENT

Question 5

Displays assets, liabilities, and equity at a specific point of time.

Answer 5

BALANCE SHEET

Question 6

Reports revenue, expenses, and profit over a specific period

Answer 6

ASSETS

Question 7

any money that a company owes to outside parties, from bills it has to pay to suppliers to interest on bond issued to creditors to rent, utilities and salaries.

Answer 7

LIABILITIES

Question 8

a money attributable to the owners of the business or its stakeholders.
- it is also known as net assets since it is equivalent to the total assets of a company minus its liabilities or the debt it owes to non stakeholders

Answer 8

EQUITY

Question 9

• a process of determining the fair market or present value of the assets, using book values, absolute valuation models like discounted cash flow analysis, option pricing models or comparable.

Answer 9

ASSET MEASUREMENT

Question 10

Cash, Inventory, Accounts Receivable.

Answer 10

TANGIBLE ASSET

Question 11

PROPERTY, PLANT, AND EQUIPMENT

Answer 11

INTANGIBLE ASSETS

Question 12

CURRENT ASSETS DURATION

Answer 12

LESS THAN 1 YR

Question 13

NON CURRENT ASSETS DURATION

Answer 13

WITHIN 1 YEAR

Question 14

CURRENT LIABILITIES DURATION

Answer 14

WITHIN 1 YEAR

Question 15

NON CURRENT LIABILITIES

Answer 15

MORE THAN 1YR

Question 16

• also known as net tangible assets.
  
  • is a book of value of tangible assets of the balance sheet less intangible assets and liabilities.

Answer 16

NET ASSET VALUE

Question 17

NET ASSET VALUE FORMULA

Answer 17

NAV = TA - ITA - L

Question 18

it refers to a document or spreadsheet that outlines an individual’s financial position at a given point in time.

Answer 18

PERSONAL FINANCE STATEMENT

Question 19

• it means that a sum of money is worth more now than the same sum of money in the future,

Answer 19

COST AND TIME VALUE OF MONEY

Question 20

• it represents the potential benefits that an individual/business misses out on when choosing one alternative over another.

Answer 20

OPPORTUNITY COST

Question 21

• it refers to the value of what you give up in terms of personal-satisfaction, time, or well-being when you choose one option over another.

Answer 21

PERSONAL OPPORTUNITY COST

Question 22

• • it refers to the potential monetary gain or savings you forgo when you choose one financial decision over another.

Answer 22

FINANCIAL OPPORTUNITY COST

Question 23

– is a method of examining a company’s balance sheet and income statement to learn about its liquidity, operational efficiency, and profitability. It doesn’t involve one single metric, examples of ratio analysis include current ratio, gross profit margin ratio, and inventory turnover ratio.

Answer 23

RATIO ANALYSIS

Question 24

• it is the ability to pay short-term liabilities.

Answer 24

1. *LIQUIDITY RATIO

Question 25

• it is the ability to effectively employ resources into business operations.

Answer 25

2. *EFFICIENCY RATIO

Question 26

• it is the ability to generate profits from the available asset base.

Answer 26

PROFITABILITY RATIO

Question 27

• it is the ability to evaluate the share price of a company.

Answer 27

MARKET VALUE RATIO

Question 28

• it is the ability to evaluate a company’s debt levels.

Answer 28

LEVERAGE RATIO