FBLA - Financial Literacy Practice Solution Manual Fully Solved Latest Update 2025 Already Passed
accrued expenses - Answers Expense that is not yet paid and noted as a payable.
amortisation - Answers The process of spreading the value of an intangible asset (intellectual property:
patents, trademarks, copyrights, etc.) over its useful life.
balance sheet - Answers A report that summarizes all of a entity's assets, liabilities, and equity as of a
given point in time.
bankruptcy - Answers A person, organization or business legally declared insolvent because of inability
to pay debts.
maturity (bond) - Answers The date on which the life of a transaction ends. On that date is ether has to
be renewed or it will cease to exist.
capital injection - Answers Raising capital by for example issuing new shares or selling current assets,
short term source of finance.
capital reserves - Answers The portion of business profits by capital retained and added to equity.
COGS - Answers Cost of goods sold.
corporate bond - Answers A debt security issued by a corporation and sold to investors, an interest is
offered to this.
corporation tax - Answers A tax on company profits.
creditor/accounts payable - Answers Person or organisation to whom money is owed (for goods or
services supplied, or as repayment for a loan).
credit terms - Answers Can either be standard or negotiated that control the monthly and total credit
amount, the payback time, discount for early payment and the late payment penalty.
crowd sourcing/funding - Answers The amount and value of products or material a company has
available for sale or use at the beginning (opening stock) or at the end (closing stock) of an accounting
period.
cumulative preference shares - Answers A preferred stock which allows holders to claim for omitted
dividends even after a years.
current asset - Answers An asset listed on the balance sheet with less than a 12-month life, or that is
readily convertible into cash to be used to satisfy current liabilities.
current liabilities - Answers All liabilities which have to paid due the next year, for example unpaid taxes
or dividends.
current ratio - Answers Current assets/current liabilities.
, debenture/corporate bond - Answers A fixed interests loan issued by its assets.
debt factoring - Answers A process whereby a company can sell off open customer accounts (unpaid
invoices) to a third part in order to bring in the money sooner.
debtor(GB)/accounts receivable (US) - Answers Amounts of money owed by the customer for goods or
services purchased on credit.
direct debt - Answers Is a financial transaction in which one person withdraws funds from another
person's bank account.
depreciation - Answers The process of spreading the value of an asset over its useful life.
dividend - Answers Sort of interest paid to the shareholders in relation to their amount of shares.
EBIT - Answers Earnings before interest and taxes.
EBITDA - Answers Earnings before interest and taxes depreciation and amortisation.
equity/owners capital - Answers The net amount of funds invested in a business by its owners, plus any
retained earnings. It is also calculated as the difference between the total of all recorded assets and
liabilities on an entity's balance sheet.
expenditure - Answers Ausgaben.
External Liabilities - Answers Loan capital + Current liabilities.
external liabilities - Answers The total amount of debts owed to external investors (no shareholders),
e.g, banks.
balance - Answers How much money I have left.
budget - Answers A plan for saving and spending my money, with a goal of meeting my financial goals.
expenses - Answers An outflow of money to another person or store or other group to pay for goods or
service.
gross income - Answers Income before taxes.
income tax - Answers Money that wage earners pay the government to run the country. The amount of
the tax depends upon how much I earn.
net income - Answers The income that remains after taxes and other deductions are taken from an
individual's gross income.
payroll tax - Answers Tax on wages and salaries to finance social security and medicare costs.
accrued expenses - Answers Expense that is not yet paid and noted as a payable.
amortisation - Answers The process of spreading the value of an intangible asset (intellectual property:
patents, trademarks, copyrights, etc.) over its useful life.
balance sheet - Answers A report that summarizes all of a entity's assets, liabilities, and equity as of a
given point in time.
bankruptcy - Answers A person, organization or business legally declared insolvent because of inability
to pay debts.
maturity (bond) - Answers The date on which the life of a transaction ends. On that date is ether has to
be renewed or it will cease to exist.
capital injection - Answers Raising capital by for example issuing new shares or selling current assets,
short term source of finance.
capital reserves - Answers The portion of business profits by capital retained and added to equity.
COGS - Answers Cost of goods sold.
corporate bond - Answers A debt security issued by a corporation and sold to investors, an interest is
offered to this.
corporation tax - Answers A tax on company profits.
creditor/accounts payable - Answers Person or organisation to whom money is owed (for goods or
services supplied, or as repayment for a loan).
credit terms - Answers Can either be standard or negotiated that control the monthly and total credit
amount, the payback time, discount for early payment and the late payment penalty.
crowd sourcing/funding - Answers The amount and value of products or material a company has
available for sale or use at the beginning (opening stock) or at the end (closing stock) of an accounting
period.
cumulative preference shares - Answers A preferred stock which allows holders to claim for omitted
dividends even after a years.
current asset - Answers An asset listed on the balance sheet with less than a 12-month life, or that is
readily convertible into cash to be used to satisfy current liabilities.
current liabilities - Answers All liabilities which have to paid due the next year, for example unpaid taxes
or dividends.
current ratio - Answers Current assets/current liabilities.
, debenture/corporate bond - Answers A fixed interests loan issued by its assets.
debt factoring - Answers A process whereby a company can sell off open customer accounts (unpaid
invoices) to a third part in order to bring in the money sooner.
debtor(GB)/accounts receivable (US) - Answers Amounts of money owed by the customer for goods or
services purchased on credit.
direct debt - Answers Is a financial transaction in which one person withdraws funds from another
person's bank account.
depreciation - Answers The process of spreading the value of an asset over its useful life.
dividend - Answers Sort of interest paid to the shareholders in relation to their amount of shares.
EBIT - Answers Earnings before interest and taxes.
EBITDA - Answers Earnings before interest and taxes depreciation and amortisation.
equity/owners capital - Answers The net amount of funds invested in a business by its owners, plus any
retained earnings. It is also calculated as the difference between the total of all recorded assets and
liabilities on an entity's balance sheet.
expenditure - Answers Ausgaben.
External Liabilities - Answers Loan capital + Current liabilities.
external liabilities - Answers The total amount of debts owed to external investors (no shareholders),
e.g, banks.
balance - Answers How much money I have left.
budget - Answers A plan for saving and spending my money, with a goal of meeting my financial goals.
expenses - Answers An outflow of money to another person or store or other group to pay for goods or
service.
gross income - Answers Income before taxes.
income tax - Answers Money that wage earners pay the government to run the country. The amount of
the tax depends upon how much I earn.
net income - Answers The income that remains after taxes and other deductions are taken from an
individual's gross income.
payroll tax - Answers Tax on wages and salaries to finance social security and medicare costs.
