FBLA FINAL EXAM 2025/2026 (QUESTIONS WITH 100%
CORRECT ANSWERS)
accrued expenses - Expense that is not yet paid and noted as a payable.
amortisation - The process of spreading the value of an intangible asset (intellectual property:
patents, trademarks, copyrights, etc.) over its useful life.
balance sheet - A report that summarizes all of a entity's assets, liabilities, and equity as of a given
point in time.
bankruptcy - A person, organization or business legally declared insolvent because of inability to pay
debts.
maturity (bond) - 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 - Raising capital by for example issuing new shares or selling current assets, short
term source of finance.
capital reserves - The portion of business profits by capital retained and added to equity.
COGS - Cost of goods sold.
corporate bond - A debt security issued by a corporation and sold to investors, an interest is offered
to this.
corporation tax - A tax on company profits.
creditor/accounts payable - Person or organisation to whom money is owed (for goods or services
supplied, or as repayment for a loan).
credit terms - 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 - 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 - A preferred stock which allows holders to claim for omitted dividends
even after a years.
current asset - 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 - All liabilities which have to paid due the next year, for example unpaid taxes or
dividends.
current ratio - Current assets/current liabilities.
debenture/corporate bond - A fixed interests loan issued by its assets.
debt factoring - 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) - Amounts of money owed by the customer for goods or
services purchased on credit.
direct debt - Is a financial transaction in which one person withdraws funds from another person's
bank account.
depreciation - The process of spreading the value of an asset over its useful life.
dividend - Sort of interest paid to the shareholders in relation to their amount of shares.
EBIT - Earnings before interest and taxes.
EBITDA - Earnings before interest and taxes depreciation and amortisation.
CORRECT ANSWERS)
accrued expenses - Expense that is not yet paid and noted as a payable.
amortisation - The process of spreading the value of an intangible asset (intellectual property:
patents, trademarks, copyrights, etc.) over its useful life.
balance sheet - A report that summarizes all of a entity's assets, liabilities, and equity as of a given
point in time.
bankruptcy - A person, organization or business legally declared insolvent because of inability to pay
debts.
maturity (bond) - 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 - Raising capital by for example issuing new shares or selling current assets, short
term source of finance.
capital reserves - The portion of business profits by capital retained and added to equity.
COGS - Cost of goods sold.
corporate bond - A debt security issued by a corporation and sold to investors, an interest is offered
to this.
corporation tax - A tax on company profits.
creditor/accounts payable - Person or organisation to whom money is owed (for goods or services
supplied, or as repayment for a loan).
credit terms - 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 - 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 - A preferred stock which allows holders to claim for omitted dividends
even after a years.
current asset - 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 - All liabilities which have to paid due the next year, for example unpaid taxes or
dividends.
current ratio - Current assets/current liabilities.
debenture/corporate bond - A fixed interests loan issued by its assets.
debt factoring - 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) - Amounts of money owed by the customer for goods or
services purchased on credit.
direct debt - Is a financial transaction in which one person withdraws funds from another person's
bank account.
depreciation - The process of spreading the value of an asset over its useful life.
dividend - Sort of interest paid to the shareholders in relation to their amount of shares.
EBIT - Earnings before interest and taxes.
EBITDA - Earnings before interest and taxes depreciation and amortisation.
