PPM5 with 100% correct answers
Balance Sheet - correct answers-A statement showing the financial position of a
business at a specified point in time
Consists of what the business owns (assets) and what it owes (liabilities) and how much
is left over (owner equity).
Assets - correct answers-Economic resources owned by a firm that will yield future
benefit
Liabilities - correct answers-Claims of creditors against the assets of the firm. Borrowed
equity. Current and accrued liabilities - debts must be paid within a year.
Working Capital - correct answers-Capital required for the day to day operations of a
business
Working capital = total Current assets - total current liabilities
Income statement - correct answers-An accounting report that summarizes revenues,
expenses, and net income/net profit or net loss of business for an accounting period.
Cash Flows - correct answers-Shows how changes in balance sheet accounts and
income affect cash and cash equivalents
Equity - correct answers-Portrays changes in the capital balance of a business over a
reporting period
Budget - correct answers-A financial plan for a defined period, often one year
Accredited Business Accountant/Advisor (ABA) - correct answers-Demonstrated entry-
level knowledge and skill proficiency to provide competent financial and managerial
accounting and reporting, business law, ethics, and taxation
Pass the ABA exam and have at least 3 years of related work experience, up to two
through college credit/
Certified Public Accountant (CPA) - correct answers-The ONLY accountants who are
licensed by the state government and allowed to write audit reports and give opinions
on publicly traded company financials
Can also sign tax returns as paid preparers and represent clients in front of the IRS
Certified financial analyst (CFA) - correct answers-Trains one to think analytically about
finances, investing, and business operations
Most are finance professionals working on Wall Street
Balance Sheet - correct answers-A statement showing the financial position of a
business at a specified point in time
Consists of what the business owns (assets) and what it owes (liabilities) and how much
is left over (owner equity).
Assets - correct answers-Economic resources owned by a firm that will yield future
benefit
Liabilities - correct answers-Claims of creditors against the assets of the firm. Borrowed
equity. Current and accrued liabilities - debts must be paid within a year.
Working Capital - correct answers-Capital required for the day to day operations of a
business
Working capital = total Current assets - total current liabilities
Income statement - correct answers-An accounting report that summarizes revenues,
expenses, and net income/net profit or net loss of business for an accounting period.
Cash Flows - correct answers-Shows how changes in balance sheet accounts and
income affect cash and cash equivalents
Equity - correct answers-Portrays changes in the capital balance of a business over a
reporting period
Budget - correct answers-A financial plan for a defined period, often one year
Accredited Business Accountant/Advisor (ABA) - correct answers-Demonstrated entry-
level knowledge and skill proficiency to provide competent financial and managerial
accounting and reporting, business law, ethics, and taxation
Pass the ABA exam and have at least 3 years of related work experience, up to two
through college credit/
Certified Public Accountant (CPA) - correct answers-The ONLY accountants who are
licensed by the state government and allowed to write audit reports and give opinions
on publicly traded company financials
Can also sign tax returns as paid preparers and represent clients in front of the IRS
Certified financial analyst (CFA) - correct answers-Trains one to think analytically about
finances, investing, and business operations
Most are finance professionals working on Wall Street
