FIN 306 FINANCIAL MANAGEMENT 2026
EXAM PAPER QUESTIONS SOLUTIONS
GRADED PLUS SCRIPT FINAL
◉ what is revenue
Answer: amount of assets created from sale.
products, membership, software, hardware, etc
◉ what are expenses
Answer: amount of assets consumed in generating revenues.
wages, utilities, wholesale cost
◉ if revenue exceeds expenses what happens
Answer: you get net income
◉ if revenue is less than expenses paid, what happens
Answer: net loss
◉ how to find net income or net loss
Answer: revenue- expenses= if + net income, if - net loss
,◉ gross profit and loss
Answer: difference between sales and cost of good sold. retail price-
wholesale cost to buy.
sales- cost of goods
◉ operating income and equation
Answer: day to day basis
sales- cost of goods sold- operating expenses
◉ non operating expenses
Answer: interest and income taxes
no connection with specific nature operating business
◉ EPS definition and equation
Answer: earnings per share
net income/ outstanding number of shares of stock
◉ gains
Answer: making money from activity outside natural activities of
busines
◉ statement of cash flow
,Answer: how cash changed from beginning to end and why cash
in(receipts) and cash out(payments) from operating, investing,
financing
◉ operational activity; inflow and outflow
Answer: day to day activities
operation cash inflow selling goods, providing services,
operation cash outflow wages, utilities tax
◉ investing activity; inflow and outflow
Answer: inflow selling buildings, selling land
outflow buying buildings and land
◉ financial activity; inflow and outflow
Answer: inflow borrowing $, receiving investments from owners
outflow repaying loan, dividends,
◉ cash inflow
Answer: receiving cash investments form owners, cash from bank
when borrowing $, cash from customers, cash from sale of old
machines, buildings, etc
◉ cash outflow
, Answer: paying to buy new machines, buildings, paying employee
wages, suppliers for inventory purchases, interst on loans, principal
on loans, dividends
◉ stmt of retained earnings
Answer: accumulated profit and loss since business started. links
income stmt and balance sheet together. from one accounting period
to the next.
beg. retained earnings + net income for period - dividends paid
during
◉ what does sec do
Answer: monitors securities market and financial disclosures
◉ form 10k, what is it, where is it found, how often
Answer: annual filing, tells what the business does and products and
services sold/offered, risk of company,
properties owned, legal proceedings, mngmt discussion fo how
company is doing and future outlook, financial stmts,
file w/i 60 days of fiscal year
sec website
◉ form 10q
EXAM PAPER QUESTIONS SOLUTIONS
GRADED PLUS SCRIPT FINAL
◉ what is revenue
Answer: amount of assets created from sale.
products, membership, software, hardware, etc
◉ what are expenses
Answer: amount of assets consumed in generating revenues.
wages, utilities, wholesale cost
◉ if revenue exceeds expenses what happens
Answer: you get net income
◉ if revenue is less than expenses paid, what happens
Answer: net loss
◉ how to find net income or net loss
Answer: revenue- expenses= if + net income, if - net loss
,◉ gross profit and loss
Answer: difference between sales and cost of good sold. retail price-
wholesale cost to buy.
sales- cost of goods
◉ operating income and equation
Answer: day to day basis
sales- cost of goods sold- operating expenses
◉ non operating expenses
Answer: interest and income taxes
no connection with specific nature operating business
◉ EPS definition and equation
Answer: earnings per share
net income/ outstanding number of shares of stock
◉ gains
Answer: making money from activity outside natural activities of
busines
◉ statement of cash flow
,Answer: how cash changed from beginning to end and why cash
in(receipts) and cash out(payments) from operating, investing,
financing
◉ operational activity; inflow and outflow
Answer: day to day activities
operation cash inflow selling goods, providing services,
operation cash outflow wages, utilities tax
◉ investing activity; inflow and outflow
Answer: inflow selling buildings, selling land
outflow buying buildings and land
◉ financial activity; inflow and outflow
Answer: inflow borrowing $, receiving investments from owners
outflow repaying loan, dividends,
◉ cash inflow
Answer: receiving cash investments form owners, cash from bank
when borrowing $, cash from customers, cash from sale of old
machines, buildings, etc
◉ cash outflow
, Answer: paying to buy new machines, buildings, paying employee
wages, suppliers for inventory purchases, interst on loans, principal
on loans, dividends
◉ stmt of retained earnings
Answer: accumulated profit and loss since business started. links
income stmt and balance sheet together. from one accounting period
to the next.
beg. retained earnings + net income for period - dividends paid
during
◉ what does sec do
Answer: monitors securities market and financial disclosures
◉ form 10k, what is it, where is it found, how often
Answer: annual filing, tells what the business does and products and
services sold/offered, risk of company,
properties owned, legal proceedings, mngmt discussion fo how
company is doing and future outlook, financial stmts,
file w/i 60 days of fiscal year
sec website
◉ form 10q
