EEE Final (Eastham Online OkState)
UPDATED ACTUAL Exam Questions and
CORRECT Answers
financial management - CORRECT ANSWER deals with two activities: raising money
and managing a company's finances in a way that achieve the highest rate of return
profitability - CORRECT ANSWER ability to earn a profit
liquidity - CORRECT ANSWER company's ability to meet its short term financial
obligations
accounts receivable - CORRECT ANSWER money owed to a company by its customers
inventory - CORRECT ANSWER company's merchandise, raw materials, and products
waiting to be sold
efficiency - CORRECT ANSWER how productively a firm utilizes its assets relative to its
revenue and its profits
stability - CORRECT ANSWER strength and vigor of the firms overall financial posture
debt to equity ratio - CORRECT ANSWER calculated dividing its long term debt by
shareholders equity
forecasts - CORRECT ANSWER estimate of a firms future income and expenses based on
its past performance, its current circumstances, and its future plans
,budgets - CORRECT ANSWER itemized forecasts of a company income, expenses, and
capital needs and are also an important tool for financial planning and control
financial ratios - CORRECT ANSWER depict relationships between items on a firms
finan statements, are used to discern whether a firm is meeting its financial objectives and how it
stacks up against industry peers
historical financial statements - CORRECT ANSWER reflect past performance and are
usually prepared quarterly and annually
10 k - CORRECT ANSWER report similar to the annual report except that it contains
more detailed information about the companys business
pro forma financial statements - CORRECT ANSWER projections for future periods
based on forecasts and are typically completed for two to three years in the future
income statement - CORRECT ANSWER reflects the results of operations of a firm over a
specified period of time
net sales - CORRECT ANSWER consists of total sales minus allowances for returned
goods and discounts
operating expenses - CORRECT ANSWER includes marketing, administrative costs, and
other expenses not directly related to producing a product or service
profit margin - CORRECT ANSWER return on sales, net income divided by net sales
balance sheet - CORRECT ANSWER snapshot of a company's assets, liabilities, and
owners equity at a specific point in time
, current assets - CORRECT ANSWER cash plus items that are readily convertible to cash,
such as accounts receivable, marketable securities, and inventories
fixed assets - CORRECT ANSWER assets used over a long period of time, such as real
estate, buildings, equipment, and furniture
current liabilities - CORRECT ANSWER includes obligations that are payable within a
year, including accounts payable, accrued expenses, and the current portion of long term debt
long term liabilities - CORRECT ANSWER includes notes or loans that are repayable
beyond one year, including liabilities associated with purchasing real estate, buildings, and
equipment
owners equity - CORRECT ANSWER equity invested in the business by its owners plus
the accumulated earnings retained by the business after paying dividends
working capital - CORRECT ANSWER (currents assets) - (current liabilities)
current ratio - CORRECT ANSWER (current assets)
-------------------
(current liabilities)
statement of cash flows - CORRECT ANSWER summarizes the changes in a firms cash
position for a specified period of time and details why the change occurred
operating activities - CORRECT ANSWER include net income, depreciation, and changes
in current assets over current liabilities other than cash and short term debt
investing activities - CORRECT ANSWER include purchase and sale and investment of
fixed assets such as real estate, equipment, and buildings
UPDATED ACTUAL Exam Questions and
CORRECT Answers
financial management - CORRECT ANSWER deals with two activities: raising money
and managing a company's finances in a way that achieve the highest rate of return
profitability - CORRECT ANSWER ability to earn a profit
liquidity - CORRECT ANSWER company's ability to meet its short term financial
obligations
accounts receivable - CORRECT ANSWER money owed to a company by its customers
inventory - CORRECT ANSWER company's merchandise, raw materials, and products
waiting to be sold
efficiency - CORRECT ANSWER how productively a firm utilizes its assets relative to its
revenue and its profits
stability - CORRECT ANSWER strength and vigor of the firms overall financial posture
debt to equity ratio - CORRECT ANSWER calculated dividing its long term debt by
shareholders equity
forecasts - CORRECT ANSWER estimate of a firms future income and expenses based on
its past performance, its current circumstances, and its future plans
,budgets - CORRECT ANSWER itemized forecasts of a company income, expenses, and
capital needs and are also an important tool for financial planning and control
financial ratios - CORRECT ANSWER depict relationships between items on a firms
finan statements, are used to discern whether a firm is meeting its financial objectives and how it
stacks up against industry peers
historical financial statements - CORRECT ANSWER reflect past performance and are
usually prepared quarterly and annually
10 k - CORRECT ANSWER report similar to the annual report except that it contains
more detailed information about the companys business
pro forma financial statements - CORRECT ANSWER projections for future periods
based on forecasts and are typically completed for two to three years in the future
income statement - CORRECT ANSWER reflects the results of operations of a firm over a
specified period of time
net sales - CORRECT ANSWER consists of total sales minus allowances for returned
goods and discounts
operating expenses - CORRECT ANSWER includes marketing, administrative costs, and
other expenses not directly related to producing a product or service
profit margin - CORRECT ANSWER return on sales, net income divided by net sales
balance sheet - CORRECT ANSWER snapshot of a company's assets, liabilities, and
owners equity at a specific point in time
, current assets - CORRECT ANSWER cash plus items that are readily convertible to cash,
such as accounts receivable, marketable securities, and inventories
fixed assets - CORRECT ANSWER assets used over a long period of time, such as real
estate, buildings, equipment, and furniture
current liabilities - CORRECT ANSWER includes obligations that are payable within a
year, including accounts payable, accrued expenses, and the current portion of long term debt
long term liabilities - CORRECT ANSWER includes notes or loans that are repayable
beyond one year, including liabilities associated with purchasing real estate, buildings, and
equipment
owners equity - CORRECT ANSWER equity invested in the business by its owners plus
the accumulated earnings retained by the business after paying dividends
working capital - CORRECT ANSWER (currents assets) - (current liabilities)
current ratio - CORRECT ANSWER (current assets)
-------------------
(current liabilities)
statement of cash flows - CORRECT ANSWER summarizes the changes in a firms cash
position for a specified period of time and details why the change occurred
operating activities - CORRECT ANSWER include net income, depreciation, and changes
in current assets over current liabilities other than cash and short term debt
investing activities - CORRECT ANSWER include purchase and sale and investment of
fixed assets such as real estate, equipment, and buildings
