ESB Exam Study Guide
Acquisition Cost - correct answer ✔✔the cost of obtaining data that you don't have
Contingency costs - correct answer ✔✔amount of money included to cover potential events that are not
specifically accounted for in a cost estimate
Variable Cost - correct answer ✔✔a cost that rises or falls depending on how much is produced
fixed costs - correct answer ✔✔costs that do not vary with production or sales level
pro forma - correct answer ✔✔financial statement
Small Business Administration (SBA) - correct answer ✔✔government agency that helps small business
owners develop business plans and obtain financing
Limited Liability Company (LLC) - correct answer ✔✔a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - correct answer ✔✔a small business entity that is created under state laws
liquid assets - correct answer ✔✔cash and items that can be quickly converted to cash
Assets - correct answer ✔✔resources owned by a business
dividend - correct answer ✔✔The portion of corporate profits paid out to stockholders
liability - correct answer ✔✔An amount owed by a business
, Net Income - correct answer ✔✔the difference between total revenue and total expenses when total
revenue is greater
shareholder - correct answer ✔✔Individual who owns part of a corporation
account payable - correct answer ✔✔money owed for products and services purchased on credit
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale of goods
or services
Angel Investors - correct answer ✔✔individuals who invest in start-up companies with high growth
potential in exchange for a share of ownership
Bonds - correct answer ✔✔Certificates of debt that carry a promise to buy back the bonds at a higher
price
Capital/Equity - correct answer ✔✔Funds contributed by investors to a business.
capital expenditures - correct answer ✔✔Expenditures on equipment the business will use for many
years.
equity capital - correct answer ✔✔money that a business gets from its owners in order to operate
fiscal year - correct answer ✔✔A fiscal period consisting of 12 consecutive months.
Crowdfunding - correct answer ✔✔using social networking to appeal to potential investors
Guarantor - correct answer ✔✔a person who agrees to pay a debt if the primary debtor does not
Income Statement Equation - correct answer ✔✔Revenues - Expenses = Net Income
Acquisition Cost - correct answer ✔✔the cost of obtaining data that you don't have
Contingency costs - correct answer ✔✔amount of money included to cover potential events that are not
specifically accounted for in a cost estimate
Variable Cost - correct answer ✔✔a cost that rises or falls depending on how much is produced
fixed costs - correct answer ✔✔costs that do not vary with production or sales level
pro forma - correct answer ✔✔financial statement
Small Business Administration (SBA) - correct answer ✔✔government agency that helps small business
owners develop business plans and obtain financing
Limited Liability Company (LLC) - correct answer ✔✔a form of business ownership that offers both
limited liability to its owners and flexible tax treatment
S cooperation - correct answer ✔✔a small business entity that is created under state laws
liquid assets - correct answer ✔✔cash and items that can be quickly converted to cash
Assets - correct answer ✔✔resources owned by a business
dividend - correct answer ✔✔The portion of corporate profits paid out to stockholders
liability - correct answer ✔✔An amount owed by a business
, Net Income - correct answer ✔✔the difference between total revenue and total expenses when total
revenue is greater
shareholder - correct answer ✔✔Individual who owns part of a corporation
account payable - correct answer ✔✔money owed for products and services purchased on credit
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale of goods
or services
Angel Investors - correct answer ✔✔individuals who invest in start-up companies with high growth
potential in exchange for a share of ownership
Bonds - correct answer ✔✔Certificates of debt that carry a promise to buy back the bonds at a higher
price
Capital/Equity - correct answer ✔✔Funds contributed by investors to a business.
capital expenditures - correct answer ✔✔Expenditures on equipment the business will use for many
years.
equity capital - correct answer ✔✔money that a business gets from its owners in order to operate
fiscal year - correct answer ✔✔A fiscal period consisting of 12 consecutive months.
Crowdfunding - correct answer ✔✔using social networking to appeal to potential investors
Guarantor - correct answer ✔✔a person who agrees to pay a debt if the primary debtor does not
Income Statement Equation - correct answer ✔✔Revenues - Expenses = Net Income
