Question 1

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Operating,investing,and financing activities that result in cash inflows or outflows

Accepted Answer

Cash flow activities refer to the operating, investing, and financing activities that result in cash inflows or outflows.

Question 2

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-Financing provided by creditors

Accepted Answer

Debt is financing provided by creditors.

Answer: F
 Interest expense refers to the cost of borrowing money, typically from creditors.

Answer: G
 A mortgage is a loan provided to finance the purchase of real estate, often used to buy a home.

Answer: H
 Operating expenses are the costs associated with running a business, such as rent, utilities, and employee salaries.

Answer: I
 Owners' equity represents the portion of a company's assets that is owned by its shareholders.

Answer: J
 Retained earnings are a portion of a company's profits that are kept and reinvested in the business rather than distributed as dividends to shareholders.

(Note: The other terms listed do not match the definition given)

Question 3

Match the term with its definition.
a.Cost of goods sold
b.Gross profit
c.Long-term notes
d.Net profits
e.Operating profits
f.Profit margins
g.Profits before taxes
h.Total asset turnover
-Earnings that may be distributed to the owners or reinvested in the company

Accepted Answer

Net profits are the earnings that may be distributed to the owners or reinvested in the company after deducting all expenses and taxes.

Possible additional answer:
Answer: H 
 Operating profits are the profits generated by a company's normal business operations, excluding any interest or taxes. This can also be used to determine how efficient a company is at generating profits from its core activities.

Question 4

Match the term with its definition.
a.Accounts payable
b.Accounts receivable
c.Accumulated depreciation
d.Common stock
e.Current assets
f.Current debt
g.Current ratio
h.Depreciation expense
-Borrowed money that must be repaid within 12 months

Accepted Answer

Current debt (short-term liabilities) refers to borrowed money that must be repaid within 12 months.

Question 5

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-Owners' investments in a company plus cumulative net profits retained in the firm

Accepted Answer

The answer of Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial...

Question 6

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Depreciable assets at their original cost,before any depreciation expense has been taken

Accepted Answer

Gross fixed assets refer to depreciable assets at their original cost, before any depreciation expense has been taken.

Question 7

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-The impact of financing with debt rather than with equity

Accepted Answer

The answer of Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial...

Question 8

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Agreements to repay cash amounts borrowed from banks or other lending sources within 12 months or less

Accepted Answer

Short-term notes are agreements to repay cash amounts borrowed from banks or other lending sources within 12 months or less.

Question 9

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Operating expenses that have been incurred and are owed but not yet paid

Accepted Answer

The answer of Match the term with its definition.
a.Accrued expenses
b.Cash...

Question 10

Match the term with its definition.
a.Accounts payable
b.Accounts receivable
c.Accumulated depreciation
d.Common stock
e.Current assets
f.Current debt
g.Current ratio
h.Depreciation expense
-Assets that can be converted to cash relatively quickly

Accepted Answer

The answer of Match the term with its definition.
a.Accounts payable
b.Accounts...

Question 11

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-The process of converting inventory to cash

Accepted Answer

The answer of Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial...

Question 12

Match the term with its definition.
a.Cost of goods sold
b.Gross profit
c.Long-term notes
d.Net profits
e.Operating profits
f.Profit margins
g.Profits before taxes
h.Total asset turnover
-Earnings after operating expenses and interest expenses but before taxes

Accepted Answer

The answer of Match the term with its definition.
a.Cost of...

Question 13

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-A financial report showing a firm's sources of cash as well as its uses of cash

Accepted Answer

The statement of cash flows is the financial report that shows a firm's sources and uses of cash.

Question 14

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Physical assets that will be used in the business for more than one year

Accepted Answer

The answer of Match the term with its definition.
a.Accrued expenses
b.Cash...

Question 15

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-A long-term loan to purchase a building or land

Accepted Answer

A mortgage is a long-term loan used to purchase a building or land.

Question 16

Match the term with its definition.
a.Cost of goods sold
b.Gross profit
c.Long-term notes
d.Net profits
e.Operating profits
f.Profit margins
g.Profits before taxes
h.Total asset turnover
-Agreements to repay cash amounts borrowed from banks or other lending sources,plus interest,for periods longer than 12 months

Accepted Answer

The answer of Match the term with its definition.
a.Cost of...

Question 17

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-A distribution of a firm's profits to the owners

Accepted Answer

Dividends are a distribution of a firm's profits to the owners.

Question 18

Match the term with its definition.
a.Accrued expenses
b.Cash flow activities
c.Cash flow statement
d.Fixed assets
e.Gross fixed assets
f.Long-term debt
g.Other assets
h.Short-term notes
-Loans from banks or other sources with repayment terms of more than 12 months

Accepted Answer

The answer of Match the term with its definition.
a.Accrued expenses
b.Cash...

Question 19

Match the term with its definition.
a.Accounts payable
b.Accounts receivable
c.Accumulated depreciation
d.Common stock
e.Current assets
f.Current debt
g.Current ratio
h.Depreciation expense
-Total depreciation taken over time

Accepted Answer

The answer of Match the term with its definition.
a.Accounts payable
b.Accounts...

Question 20

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-Profits not paid out as dividends over the life of a business

Accepted Answer

The answer of Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial...

Quiz 10: Understanding a Firms Financial Statements

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Operating,investing,and financing activities that result in cash inflows or outflows

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -Financing provided by creditors

Match the term with its definition. a.Cost of goods sold b.Gross profit c.Long-term notes d.Net profits e.Operating profits f.Profit margins g.Profits before taxes h.Total asset turnover -Earnings that may be distributed to the owners or reinvested in the company

Match the term with its definition. a.Accounts payable b.Accounts receivable c.Accumulated depreciation d.Common stock e.Current assets f.Current debt g.Current ratio h.Depreciation expense -Borrowed money that must be repaid within 12 months

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -Owners' investments in a company plus cumulative net profits retained in the firm

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Depreciable assets at their original cost,before any depreciation expense has been taken

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -The impact of financing with debt rather than with equity

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Agreements to repay cash amounts borrowed from banks or other lending sources within 12 months or less

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Operating expenses that have been incurred and are owed but not yet paid

Match the term with its definition. a.Accounts payable b.Accounts receivable c.Accumulated depreciation d.Common stock e.Current assets f.Current debt g.Current ratio h.Depreciation expense -Assets that can be converted to cash relatively quickly

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -The process of converting inventory to cash

Match the term with its definition. a.Cost of goods sold b.Gross profit c.Long-term notes d.Net profits e.Operating profits f.Profit margins g.Profits before taxes h.Total asset turnover -Earnings after operating expenses and interest expenses but before taxes

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -A financial report showing a firm's sources of cash as well as its uses of cash

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Physical assets that will be used in the business for more than one year

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -A long-term loan to purchase a building or land

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -A distribution of a firm's profits to the owners

Match the term with its definition. a.Accrued expenses b.Cash flow activities c.Cash flow statement d.Fixed assets e.Gross fixed assets f.Long-term debt g.Other assets h.Short-term notes -Loans from banks or other sources with repayment terms of more than 12 months

Match the term with its definition. a.Accounts payable b.Accounts receivable c.Accumulated depreciation d.Common stock e.Current assets f.Current debt g.Current ratio h.Depreciation expense -Total depreciation taken over time

Match the term with its definition. a.Balance sheet b.Debt c.Dividend d.Financial leverage e.Mortgage f.Owners' equity g.Retained earnings h.Working capital cycle -Profits not paid out as dividends over the life of a business