Financial Terms II

What is an asset in financial terms?

• The money or amount of money received from one's employment.

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• A financial strategy that aims to balance risk and reward by apportioning a portfolio's assets.

• The process of documenting and communicating financial activities.

What does liability refer to in a business context?

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

• The outlay of money usually for income or profit.

• An obligation of a company that results in the company's future sacrifices of economic benefits to other entities or businesses.

• Revenue received for goods or services.

What is the definition of expenses in the context of financial statements?

• The entire property of a person subject to the payment of debts.

• A charge usually of money imposed by authority on persons or property for public purposes.

• Financial burden or outlay; an item of business outlay chargeable against revenue for a specific period.

• Interest computed on the sum of an original principal and accrued interest.

What is a mortgage?

• A financial strategy that aims to balance risk and reward by apportioning a portfolio's assets.

• A conveyance of or lien against property that becomes void upon payment or performance according to stipulated items.

• The process of documenting and communicating financial activities over specific time periods.

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

What does a cash flow statement represent?

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• The process of documenting and communicating financial activities over specific time periods.

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges; a measure of an organization's liquidity that usually consists of net income.

• Revenue received for goods or services, or from other sources, such as rents or investments.

What is the primary purpose of investment?

What is the main focus of a financial report?

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• The process of documenting and communicating financial activities and performance over specific time periods, typically on a quarterly or yearly basis.

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

• An item of business outlay chargeable against revenue for a specific period.

What is income typically derived from?

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

• The entire property of a person, association, corporation, or estate.

• Revenue received for goods or services, or from other sources, such as rents or investments; the money, or amount of money, received from one's employment.

• The process of documenting and communicating financial activities.

What is the goal of asset allocation in investment strategy?

• To document and communicate financial activities over specific time periods.

• To impose a charge usually of money by authority on persons or property for public purposes.

• To balance risk and reward by apportioning a portfolio's assets among different assets, such as stocks, bonds, and cash.

• To compute interest on the sum of an original principal and accrued interest.

Answer explanation

Asset allocation in investment strategy aims to balance risk and reward by diversifying a portfolio's assets among different categories like stocks, bonds, and cash.

What is Accounts Receivable?

• The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

• Money owed by a company to its creditors.

• A statement of financial condition at a given date.

• The quality or state of being bankrupt.

Answer explanation

Accounts Receivable refers to the balance of money due to a firm for goods or services delivered but not yet paid for by customers.