FINAL EXAM AMPD 4093 QUESTIONS
WITH COMPLETE SOLUTIONS
PASSED 2025/2026
balance sheet - correct answer ✔✔an accounting statement of the company's assets, liability,
and equity for a period of time
assets - correct answer ✔✔the items that a company owns, such as cash, accounts receivable,
inventory, equipment, and buildings
short-term assets - correct answer ✔✔cash or cash-equivalents or items that can be converted
to cash in less than a year, such as inventory and accounts receivable
long-term assets - correct answer ✔✔items that take longer than a year to convert to cash such
as equipment and buildings
liabilities - correct answer ✔✔company's legal financial debts or obligations
short-term liabilities - correct answer ✔✔payables which often include payments owed to
vendors for raw materials and/or labor
long-term liabilities - correct answer ✔✔items such as mortgages for buildings or long-term
leases for production facilities
when a company's assets exceeds its liabilities, there is equity in the business - correct answer
✔✔true
, income statement - correct answer ✔✔profit and loss statement
net income formula - correct answer ✔✔(total revenue+ gains) - (total expenses +losses)
cashflow statement - correct answer ✔✔shows how much cash is generated and used during a
given time period
main categories found in a cash flow statement - correct answer ✔✔operating activities
investing activities
financing activities
working capital - correct answer ✔✔the difference between current assets and current
liabilities
short term business financing - correct answer ✔✔smaller amounts and are paid more quickly
long term business financing - correct answer ✔✔larger amounts
accounts payable - correct answer ✔✔money that a manufacturer owes
accounts receivable - correct answer ✔✔money that is owed to a manufacturer for work that it
has performed, such as production of goods for its garment contract
cost of goods sold - correct answer ✔✔direct cost attributable to the items sold by the retailer
receivable financing - correct answer ✔✔when a designer obtains funds in advance by factoring
its receivables
WITH COMPLETE SOLUTIONS
PASSED 2025/2026
balance sheet - correct answer ✔✔an accounting statement of the company's assets, liability,
and equity for a period of time
assets - correct answer ✔✔the items that a company owns, such as cash, accounts receivable,
inventory, equipment, and buildings
short-term assets - correct answer ✔✔cash or cash-equivalents or items that can be converted
to cash in less than a year, such as inventory and accounts receivable
long-term assets - correct answer ✔✔items that take longer than a year to convert to cash such
as equipment and buildings
liabilities - correct answer ✔✔company's legal financial debts or obligations
short-term liabilities - correct answer ✔✔payables which often include payments owed to
vendors for raw materials and/or labor
long-term liabilities - correct answer ✔✔items such as mortgages for buildings or long-term
leases for production facilities
when a company's assets exceeds its liabilities, there is equity in the business - correct answer
✔✔true
, income statement - correct answer ✔✔profit and loss statement
net income formula - correct answer ✔✔(total revenue+ gains) - (total expenses +losses)
cashflow statement - correct answer ✔✔shows how much cash is generated and used during a
given time period
main categories found in a cash flow statement - correct answer ✔✔operating activities
investing activities
financing activities
working capital - correct answer ✔✔the difference between current assets and current
liabilities
short term business financing - correct answer ✔✔smaller amounts and are paid more quickly
long term business financing - correct answer ✔✔larger amounts
accounts payable - correct answer ✔✔money that a manufacturer owes
accounts receivable - correct answer ✔✔money that is owed to a manufacturer for work that it
has performed, such as production of goods for its garment contract
cost of goods sold - correct answer ✔✔direct cost attributable to the items sold by the retailer
receivable financing - correct answer ✔✔when a designer obtains funds in advance by factoring
its receivables
