
Introduction to Financial Terms and Concepts
Authored by Mike Goldstein
Business
University
Used 1+ times

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8 questions
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1.
MATCH QUESTION
1 min • 1 pt
Match the following
Assets
When a business's expenses exceed its revenue.
Revenue
The costs incurred by a business in its operations to generate revenue.
Loss
The total amount of money earned by a business from its operations or sales.
Expenses
Resources owned by a business, such as cash, property, or equipment.
Profit
The financial gain when revenue exceeds expenses.
2.
MATCH QUESTION
1 min • 1 pt
Match the following
Income Statement
A financial statement that shows a company’s revenues and expenses over a specific period, indicating profit or loss.
Equity
A financial statement that shows a company’s assets, liabilities, and equity at a specific point in time.
Liabilities
The owner’s stake in the company, calculated as Assets minus Liabilities.
Cash Flow
Debts or obligations the business owes, such as loans or unpaid bills.
Balance Sheet
The movement of money in and out of a business, showing liquidity.
3.
MATCH QUESTION
1 min • 1 pt
Match the following
Variable Costs
Business expenses that remain the same regardless of the level of production or sales, such as rent or salaries.
Gross Profit
Costs that vary depending on the business's level of production or sales, like raw materials or utility expenses.
Fixed Costs
A financial document that tracks the cash inflows and outflows from operating, investing, and financing activities.
Break-even Point
The point where total revenue equals total costs, resulting in no profit or loss.
Cash Flow Statement
Revenue minus the cost of goods sold (COGS), showing the basic profitability before operating expenses.
4.
MATCH QUESTION
1 min • 1 pt
Match the following
Budgeting
The final profit after all expenses, taxes, and costs have been deducted from revenue.
Net Profit
A measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.
Depreciation
The day-to-day costs required to run the business, excluding direct production costs.
Operating Expenses
The reduction in the value of an asset over time due to wear and tear or obsolescence.
Return on Investment (ROI)
The process of creating a plan to spend money in order to control finances.
5.
MATCH QUESTION
1 min • 1 pt
Match the following
Operating Income
The profit a company makes from its core business operations, excluding costs related to non-operating activities (e.g., taxes, interest).
Current Liabilities
The ability of a business to meet its short-term obligations using its most liquid assets (e.g., cash, marketable securities).
Capital Expenditure (CapEx)
Assets that are expected to be converted into cash or used up within one year, such as inventory or accounts receivable.
Liquidity
Funds used by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
Current Assets
Obligations that a company needs to settle within a year, such as accounts payable or short-term loans.
6.
MATCH QUESTION
1 min • 1 pt
Match the following
Capital
Money owed to a company by its customers for goods or services delivered but not yet paid for.
Working Capital
A measure of a company's short-term financial health, calculated as Current Assets minus Current Liabilities.
Accounts Payable
Financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.
Accounts Receivable
A measure of a company’s financial leverage, calculated by dividing total liabilities by shareholders’ equity.
Debt-to-Equity Ratio
Money a business owes to suppliers or vendors for goods or services received but not yet paid for.
7.
MATCH QUESTION
1 min • 1 pt
Match the following
Overhead Costs
The total assets minus total liabilities of a company, also referred to as equity or shareholders' equity.
Net Worth
The difference between a company's revenue and its cost of goods sold.
Dividends
The cost of borrowing money, typically expressed as a percentage of the loan amount.
Gross Margin
Ongoing business expenses not directly tied to creating a product or service, such as rent, utilities, and administrative salaries.
Interest
A portion of a company’s earnings that is distributed to shareholders.
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