Quiz 1

Question 1

balance sheet (financial condition)

Answer 1

reports the company’s assets, liabilities and owners’ equity as of a specified date

Question 2

balance sheet date

Answer 2

the specified date of the balance sheet reporting assets and liabilities

Question 3

asset

Answer 3

anything owned by the company

Question 4

accounts receivable

Answer 4

amounts due from customers for goods and services the co. has already provided

Question 5

inventory

Answer 5

merchandise normally available for sale to customers

Question 6

current asset

Answer 6

an asset expected to be converted to cash within one year

Question 7

non current asset

Answer 7

an asset expected to be converted to cash in greater than one year - has 2 sub categories

Question 8

categories of non current assets

Answer 8

fixed and intangible

Question 9

fixed asset

Answer 9

land, buildings, equipment and other long-term (more than 1 year) assets, are also known as plant assets

Question 10

intangible asset

Answer 10

sub category of long term assets - include patents, trademarks, copyrights and goodwill

Question 11

alternate names for fixed assets

Answer 11

PP&E property plant and equipment

Question 12

owners equity

Answer 12

indicates the owners’ investment in the business

Question 13

current + non current assets equal

Answer 13

total assets

Question 14

current liabilities + long-term debt equals

Answer 14

total liabilities

Question 15

alternate name for balance sheet

Answer 15

statement of financial condition

Question 16

3 examples of intellectual property

Answer 16

patent, copyright, trademark

Question 17

2 names for reinvested profits

Answer 17

owners equity and retained earnings

accumulated earnings and reinvested profits

Question 18

who do the profits of the business belong to

Answer 18

the owners

Question 19

alternate name for profits

Answer 19

earnings

Question 20

corporations name for owners equity

Answer 20

stockholder/shareholder equity

Question 21

is preferred stock listed before or after common on the balance sheet

Answer 21

before

Question 22

income statement

Answer 22

reports the business’s revenues, expenses, and net income for a specified period of time

Question 23

revenues / top line

Answer 23

total sales

Question 24

expenses

Answer 24

costs incurred to generate sales

Question 25

2 alternate names for income statement

Answer 25

P&L/statement of operations

Question 26

profit and loss abbreviation

Answer 26

P&L

Question 27

alternate terms for income

Answer 27

profit, earnings

Question 28

dividend

Answer 28

a distribution (payment) of a corporation’s net income to its shareholders

Question 29

what happens to profits not paid as dividends

Answer 29

reinvested and show up as retained earnings on the balance sheet

Question 30

term for reinvested profits on the balance sheet

Answer 30

retained earnings

Question 31

example of wealth

Answer 31

is what you have/own, car, house, stocks, jewelry

Question 32

what is / an example of income

Answer 32

how much you make/earn, job, dividends, rental

Question 33

is net worth used to measure income wealth or both

Answer 33

wealth

Question 34

what is the financial goal of a business

Answer 34

maximize the wealth of the owners

Question 35

how is the financial goal of a business achieved

Answer 35

turning ideas into commercial opportunity and creating value

Question 36

how to calculate net worth

Answer 36

Assets - Liabilities = Net Worth (OE)