ESP1318 unit 3

This definition corresponds to:

money (or some equivalent value) that an individual or business receives, usually in exchange for providing a good or service or through investing capital.

• Income

• expense

the following definition corresponds to:

The direct costs attributable to the production of goods sold by a company

• Revenue

• Costs of goods sold

It's the company's total revenues minus the costs of good sold:

• Revenue

• Gross Profit

They are the economic costs a business incurs to earn revenue:

• Expenses

• Other income

How would you describe the change in this account?

• Rapid decrease

• Hold steady

• Slight increase

How would you describe the change in Gross sales?

• decline

• rise

The name of this ratio is...

• Current Ratio

• Return on equity Ratio

The name of this ratio is.....

• Profit Margin Ratio

• Debt Ratio

Current Ratio:

• A higher current ratio is better

• A lower current ratio is better

Debt ratio:

• A lower debt ratio is better

• A higher debt ratio is better