Question 1

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-A measure of a company's relative liquidity

Accepted Answer

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

Question 2

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
-A measure of how efficiently a firm is using its assets to generate sales

Accepted Answer

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

Question 3

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-The cost of borrowed money

Accepted Answer

Interest expense refers to the cost of borrowed money.

Question 4

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-A financial report showing the amount of profits or losses from a firm's operations over a given period of time

Accepted Answer

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

Question 5

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
-Profits as a percentage of sales

Accepted Answer

Profit margins are calculated by dividing the profits (whether gross, operating, or net) by the revenue or sales, and expressing the result as a percentage.

Question 6

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
-Sales less the cost of goods sold

Accepted Answer

Gross profits is defined as sales less the cost of goods sold.

Question 7

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-A measure of what percentage of a firm's assets is financed by debt

Accepted Answer

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

Question 8

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-Gross fixed assets less accumulated depreciation

Accepted Answer

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

Question 9

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-The cost of producing or acquiring goods or services to be sold by a firm

Accepted Answer

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

Question 10

Match the term with its definition.
a.Cost of goods sold
b.Current ratio
c.Debt ratio
d.Depreciable assets
e.Income statement
f.Interest expense
g.Inventory
h.Net fixed assets
-Assets whose value declines over time

Accepted Answer

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

Question 11

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 but before interest and taxes are paid

Accepted Answer

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

Quiz 10: Understanding a Firms Financial Statements

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -A measure of a company's relative liquidity

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 -A measure of how efficiently a firm is using its assets to generate sales

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -The cost of borrowed money

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -A financial report showing the amount of profits or losses from a firm's operations over a given period of time

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 -Profits as a percentage of sales

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 -Sales less the cost of goods sold

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -A measure of what percentage of a firm's assets is financed by debt

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -Gross fixed assets less accumulated depreciation

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -The cost of producing or acquiring goods or services to be sold by a firm

Match the term with its definition. a.Cost of goods sold b.Current ratio c.Debt ratio d.Depreciable assets e.Income statement f.Interest expense g.Inventory h.Net fixed assets -Assets whose value declines over time

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 but before interest and taxes are paid