Supplement A

______ are assets that can be converted into cash within a year

Current assets

Earnings before interest, taxes, depreciation, and amortization is the same as ______

EBITDA

Arabella went to her accountant and learned about DOI, defined as ______.

a measure of the average number of days it takes to sell the entire inventory of a company

Janis went to her accountant and learned about DSO, defined as ______.

a measure of the number of days it takes to collect on accounts receivable

Arya wants to produce a financial report that shows the amounts the company owes, what it owns, including the shareholders' stake at a particular date in time. She wants to produce a/an ______.

balance sheet

Vivienne wants to produce a report that measures her financial performance on a monthly basis. She wants to see sales- and expense-related activities that result in profit or loss over a period of time. She is interested in producing which of the following statements?

income statement

Brynlee paid $500,000 for a company, $100,000 in excess of the book value. Brynlee has ______.

goodwill of $100,000

When a company has long-term investments, it means it ______.

has cash, stocks, bonds, and/or real estate that has been on its books longer than one year

Jimi is very interested in managing his cash. You mentioned this course to him and told him about ______, which is the number of days a company's cash is tied up in the production and sales process.

the cash conversion cycle

Karter is very busy and wants to produce a financial report that details the inflows and outflows of cash for his company over the last month. He is interested in producing a/an ______.

cash flow statement

The pro forma financial statement should include at least three scenarios of your financial forecast, each containing an income statement, balance sheet, and ______

cash flow statement

Operating expenses include which of the following?

sales, general, and administrative expenses

What is the backlog?

orders that have been received but not delivered to the customer

Which of the following are intangible assets?

patents, software programs, copyrights, trademarks, and/or brand names

Shareholder equity includes what two main components?

retained earnings and capital stock