Intro to Busi Test 2

Things you own are

• Belongings
• Possessions
• Assets
• Liabilities

Things you owe are

• Goods

• Money

• Liabilities

The accounting equation is

• Assets = Liabilities - Equity
• Assets - Liabilities = Equity
• Assets + Liabilities = Equity
• Assets = Liabilities + Equity

a statement of a firm’s financial position - what it owns and the claims against its assets - at a particular point in time.

• Balance Sheet
• Income Statement
• Cash Flow Statement
• Profit and Loss Statement

1. ________ a record of the company’s expenses over a period of time.

2. Cash and other liquid assets that can/ will be converted to cash or used within one year are ________

• Income Tracking
• Income Statement, Current Assets

• Budgeting
• Expense Tracking, Current Assets

Assets expected to last for more than one year are called ________ or ________.

• fixed assets, long-term assets
• short-term assets
• current assets, liquid assets

Claims of creditors to be repaid within one year are

• Long-term liabilities
• Fixed assets
• Shareholders' equity
• Current liabilities

Debts paid off one year or longer after the date on the balance sheet is

• Long-Term liabilities

• Shareholders' equity
• Current assets
• Operating expenses

If you sell a security for less than you bought it, you have a

• revenue
• capital gain
• profit
• capital loss

Profit / sales = _________

• Income % or Revenue ratio

• Profit margin or Net Profit Margin

• Sales margin