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BUS 100 Exam 4 Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
Financial capital - ANSWER the funds a firm uses to acquire its
assets and finance its operations.
Finance - ANSWER the functional area of business that is
concerned with finding the best sources and uses of financial
capital.
Risk - ANSWER the degree of uncertainty regarding the
outcome of a decision.
Financial ratio analysis - ANSWER computing ratios that
compare values of key accounts listed on a firms financial
statements.
Liquid asset - ANSWER an asset that can quickly be converted
into cash with little risk of loss.
Financial leverage - ANSWER the use of debt in a firms capital
structure.
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Budgeted Income Statement - ANSWER A projection showing
how a firm's budgeted sales and costs will affect expected net
income.
Line of credit - ANSWER a financial arrangement between a firm
and a bank in which the bank pre-approves credit up to a
specified limit.
Revolving credit agreement - ANSWER a guaranteed line of
credit in which a bank makes a binding commitment to provide
a business with funds up to specified credit limit at any time
during the term of the agreement .
Retained earnings - ANSWER the part of a firm's net income it
reinvests.
Equity financing - ANSWER funds provided by the owners of a
company
Cash equivalents - ANSWER safe and highly liquid assets that
many firms list with their cash holdings on their balance sheet.
BUS 100 Exam 4 Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
Financial capital - ANSWER the funds a firm uses to acquire its
assets and finance its operations.
Finance - ANSWER the functional area of business that is
concerned with finding the best sources and uses of financial
capital.
Risk - ANSWER the degree of uncertainty regarding the
outcome of a decision.
Financial ratio analysis - ANSWER computing ratios that
compare values of key accounts listed on a firms financial
statements.
Liquid asset - ANSWER an asset that can quickly be converted
into cash with little risk of loss.
Financial leverage - ANSWER the use of debt in a firms capital
structure.
, 2|Page
Budgeted Income Statement - ANSWER A projection showing
how a firm's budgeted sales and costs will affect expected net
income.
Line of credit - ANSWER a financial arrangement between a firm
and a bank in which the bank pre-approves credit up to a
specified limit.
Revolving credit agreement - ANSWER a guaranteed line of
credit in which a bank makes a binding commitment to provide
a business with funds up to specified credit limit at any time
during the term of the agreement .
Retained earnings - ANSWER the part of a firm's net income it
reinvests.
Equity financing - ANSWER funds provided by the owners of a
company
Cash equivalents - ANSWER safe and highly liquid assets that
many firms list with their cash holdings on their balance sheet.
