Finance Chapter 2 LearnSmart Questions
Rank the ease (from easiest to hardest) of turning the following assets into cash
1. Cash Equivalents 2. Accounts Receivable 3. Inventory 4. Plant and Equipment
EPS is
Earnings Per Share
GAAP
Generally Accepted Accounting Principles
Which of these items is NOT shown on the balance sheet?
Good management Favorable Economic Conditions Proprioty _____
Stockholder's equity ____ when retained earnings increase.
Increases
Whose responsibility is it to create value for the firm?
Management
The price at which willing buyers and sellers would trade is called ____ value
Market
Liabilities usually involve which of these?
Obligations to the firm Require a cash payout within a stated period of time.
An official accounting statement that helps to explain the change in cash and cash equivalents is called a ______
Statement of cash flows
What is treasury stock?
Stock that the firm has repurchased
True or False : Contract Liabilities put the firm at risk for default?
True
EBIT stands for earnings ____ and taxes
before interest
On the balance sheet assets are listed at their _____ value
book
Accounting _____ refers to the speed and ____ with which assets can be converted to ____.
liquidity ease cash
Which of the following are included in a firm's inventory?
Raw materials, finished goods, work-in-process
The short run for a firm is the period of time during which ____
some costs are fixed output can vary
One of the most important limitations of a ____ _____ is that is does not show ____ values.
Balance Sheet Market
Operating Cash Flow includes which of these?
Tax Payments
A balance sheet reflects a firm's _____ value on a particular date.
accounting
What does stockholders Equity represent?
A residual claim against the firms assets