Unit 5 - Accounting!

What is unique about an Initial Public Offering (IPO)?

• The company now has to hire an auditor

• It is the first time that a company is selling stock to the public

• The company moves from being a proprietorship to a corporation

• The government now can regulate the company

The IPO that we reviewed in class was for....

• Porsche

• Rivian

• Ernst and Young

• Volkswagen

Which of the following items would be classified as a liability on the balance sheet

• accounts receivable

• wages payable

• inventory

• vehicles

Which financial statement shows a company's financial condition for a specified date?

• income statement

• statement of cash flow projections

• balance sheet

• journal of sales

In setting goals for budgeting, what does the "M" in SMART goals mean?

• Measurable

• Meaningful

• Memorable

• Magnificent

Expenses that can change month over month are known as:

• fixed expenses

• recurring expenses

• operating expenses

• variable expenses

Which company fabricated sales of more than $300 million in order to make their company look more profitable than it was?

• Wirecard

• Luckin Coffee

• Ernst and Young

• Muddy Waters

Which financial ratio measures the company's ability to use their short-term assets to pay off their short-term liabilities?

• debt ratio

• current ratio

• operating ratio

• net profit ratio

Depreciation is only assigned to your company's ____________

• short-term assets

• long-term assets

• short-term liabilities

• long-term liabilities

The biggest factor that influences the foreign exchange (FX) rate between two countries currencies is:

• supply and demand

• balance of payments

• economic conditions

• stability of government