MGRADES
MBA Terminology UPDATED ACTUAL
Exam Questions and CORRECT Answers
Accounts Receivable - AR - CORRECT ANSWER - The amount of money owed by your
customers after goods or services have been delivered and/or used. See how it works here.
2. Accounting - ACCG - CORRECT ANSWER - A systematic way of recording and
reporting financial transactions.
3. Accounts Payable - AP - CORRECT ANSWER - The amount of money you owe
creditors (suppliers, etc.) in return for good and/or services they have delivered. See how it
works here.
Assets (Fixed and Current) - FA and CA - CORRECT ANSWER - Current assets are those
that will be used within one year. Typically this could be cash, inventory or accounts receivable.
Fixed assets (non current) are more long-term and will likely provide benefits to a company for
more than one year, such as a building, land or machinery.
5. Balance Sheet - BS - CORRECT ANSWER - A financial report that summarizes a
company's assets (what it owns), liabilities (what it owes) and owner's equity at a given time.
6. Capital - CAP - CORRECT ANSWER - A financial asset and its value, such as cash or
goods. Working capital is calculated by taking your current assets subtracted from current
liabilities.
7. Cash Flow - CF - CORRECT ANSWER - The revenue or expense expected to be
generated through business activities (sales, manufacturing, etc.) over a period of time. Having a
positive cash flow is essential in order for businesses to survive in the long run.
8.Cost of Goods Sold - COGS - CORRECT ANSWER - The direct expense related to
producing the goods sold by a company. This may include the cost of the raw materials (parts)
and amount of employee labor used in production.
MBA Terminology UPDATED ACTUAL
Exam Questions and CORRECT Answers
Accounts Receivable - AR - CORRECT ANSWER - The amount of money owed by your
customers after goods or services have been delivered and/or used. See how it works here.
2. Accounting - ACCG - CORRECT ANSWER - A systematic way of recording and
reporting financial transactions.
3. Accounts Payable - AP - CORRECT ANSWER - The amount of money you owe
creditors (suppliers, etc.) in return for good and/or services they have delivered. See how it
works here.
Assets (Fixed and Current) - FA and CA - CORRECT ANSWER - Current assets are those
that will be used within one year. Typically this could be cash, inventory or accounts receivable.
Fixed assets (non current) are more long-term and will likely provide benefits to a company for
more than one year, such as a building, land or machinery.
5. Balance Sheet - BS - CORRECT ANSWER - A financial report that summarizes a
company's assets (what it owns), liabilities (what it owes) and owner's equity at a given time.
6. Capital - CAP - CORRECT ANSWER - A financial asset and its value, such as cash or
goods. Working capital is calculated by taking your current assets subtracted from current
liabilities.
7. Cash Flow - CF - CORRECT ANSWER - The revenue or expense expected to be
generated through business activities (sales, manufacturing, etc.) over a period of time. Having a
positive cash flow is essential in order for businesses to survive in the long run.
8.Cost of Goods Sold - COGS - CORRECT ANSWER - The direct expense related to
producing the goods sold by a company. This may include the cost of the raw materials (parts)
and amount of employee labor used in production.
