CASE ABF 2.2

Front

What is a Noncurrent Asset?

Back

A Noncurrent Asset is a long-term asset that is not expected to be converted into cash or used up within one year. Examples include property, plant, and equipment.

Front

What is a Current Liability?

Back

A Current Liability is a financial obligation that is due to be settled within one year. Examples include accounts payable and short-term loans.

Front

What is an Income Statement?

Back

An Income Statement is a financial report that shows a company's revenues and expenses over a specific period, ultimately revealing the net income or loss.

Front

What is a Budget?

Back

A Budget is a financial plan that estimates future revenues and expenses, helping businesses predict profitability and manage resources.

Front

What is Liquidity?

Back

Liquidity refers to the ability of a company to meet its short-term financial obligations using its most liquid assets.

Front

What is Solvency?

Back

Solvency is the ability of a company to meet its long-term financial obligations, often assessed using the debt-to-equity ratio.

Front

What is Operating Income?

Back

Operating Income is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.

Front

What are Operating Expenses?

Back

Operating Expenses are the costs incurred during normal business operations, including rent, utilities, and salaries.

Front

What is the Debt-to-Equity Ratio?

Back

The Debt-to-Equity Ratio is a financial metric that compares a company's total liabilities to its shareholder equity, indicating the relative proportion of debt and equity financing.

Front

What is Profitability?

Back

Profitability is the ability of a company to generate income relative to its revenue, assets, or equity, often measured by profit margins.