HFA Test 3 2025/2026 Exam Questions
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Intrinsic value - 🧠ANSWER ✔✔the "true" value of something
Market value - 🧠ANSWER ✔✔the price/value at which an asset is trading in
the open market
Market cap - 🧠ANSWER ✔✔market value of a company, equals the price
per share of stock times the number of shares of stock that exist
Revenue - 🧠ANSWER ✔✔= sales = total $ a company brings in through
selling goods and services
Income - 🧠ANSWER ✔✔= net income = earnings = profit
Expenses - 🧠ANSWER ✔✔= costs
, Fixed costs - 🧠ANSWER ✔✔costs a company incurs regardless of how
much they produce/sell
Variable costs - 🧠ANSWER ✔✔costs that depend on production/sales,
often expressed as a cost per unit
Operating income/costs - 🧠ANSWER ✔✔income or costs associated with
the operations of the business...doesn't include investments in other
companies, taxes, interest payments
Financing expense - 🧠ANSWER ✔✔= interest expense (on debt)
Assets - 🧠ANSWER ✔✔assets are things of value that the company owns
(such as cash, inventory, cash the company is owed, etc
Liabilites - 🧠ANSWER ✔✔stuff a company owes...debt, agreements to
provide services, etc
Shareholder's equity - 🧠ANSWER ✔✔= book value of a company = assets
minus liabilities; value of company according to its balance sheet
Current assets - 🧠ANSWER ✔✔cash and cash equivalents + assets that
are expected to turn into cash within a year (inventory, cash the company is
owed within a year)
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Intrinsic value - 🧠ANSWER ✔✔the "true" value of something
Market value - 🧠ANSWER ✔✔the price/value at which an asset is trading in
the open market
Market cap - 🧠ANSWER ✔✔market value of a company, equals the price
per share of stock times the number of shares of stock that exist
Revenue - 🧠ANSWER ✔✔= sales = total $ a company brings in through
selling goods and services
Income - 🧠ANSWER ✔✔= net income = earnings = profit
Expenses - 🧠ANSWER ✔✔= costs
, Fixed costs - 🧠ANSWER ✔✔costs a company incurs regardless of how
much they produce/sell
Variable costs - 🧠ANSWER ✔✔costs that depend on production/sales,
often expressed as a cost per unit
Operating income/costs - 🧠ANSWER ✔✔income or costs associated with
the operations of the business...doesn't include investments in other
companies, taxes, interest payments
Financing expense - 🧠ANSWER ✔✔= interest expense (on debt)
Assets - 🧠ANSWER ✔✔assets are things of value that the company owns
(such as cash, inventory, cash the company is owed, etc
Liabilites - 🧠ANSWER ✔✔stuff a company owes...debt, agreements to
provide services, etc
Shareholder's equity - 🧠ANSWER ✔✔= book value of a company = assets
minus liabilities; value of company according to its balance sheet
Current assets - 🧠ANSWER ✔✔cash and cash equivalents + assets that
are expected to turn into cash within a year (inventory, cash the company is
owed within a year)
