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Business Finance - Peregrine Section Review Questions and answers graded A+ 2024/2025
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Business Finance - Peregrine Section Review Questions and answers graded A+ 2024/2025
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Business Finance - Peregrine SectionReview Questions
A company's stability sheet suggests the value of belongings, liabilities, and stockholders'
fairness _____.
A. For any given period of time
B. At a selected factor in time
C. At the give up of the financial yr - ANSB. At a specific factor in time
Match the ratios to their ratio kind.
A. Debt Ratios
B. Activity Ratios
C. Market Ratios
D. Liquidity Ratios
E. Profitability Ratios
Current Ratio & Quick (Acid Test) Ratio
Turnover ratios & Collection/Payment Period
Debt-to-Equity Ratio & Times Interest Earned (TIE)
Profit Margin & Return on Assets
Price/Earnings (P/E) Ratio & Market-to-Book Ratio - ANSA. Debt Ratios: Debt-to-Equity Ratio &
Times Interest Earned (TIE)
B. Activity Ratios: Turnover ratios & Collection/Payment Period
C. Market Ratios: Price/Earnings (P/E) Ratio & Market-to-Book Ratio
D. Liquidity Ratios: Current Ratio & Quick (Acid Test) Ratio
E. Profitability Ratios: Profit Margin & Return on Assets
Balance Sheet Assets - ANSCash and cash equivalents are belongings consisting of checking
account balances at business banks that can be used immediately as way of fee.
, Marketable securities constitute liquid brief-term investments, which financial analysts view as a
shape of "near cash." They include Treasury notes, industrial paper, and others.
Accounts receivable constitute the amount clients owe the company from income made on
credit score.
Inventories include raw materials, paintings in process (partially finished items), and finished
goods held through the firm.
Intangible property encompass items along with patents, trademarks, copyrights, or mineral
rights entitling the employer to extract oil and gas on specific houses.
Gross belongings, plant, and gadget (PP&E) is the authentic fee of all actual belongings,
structures, and long-lived equipment owned via the firm.
Net assets, plant, and gadget is calculated as Gross PP&E less amassed depreciation - the
cumulative price recorded for the depreciation of constant belongings since their purchase; this
reflects a decline in the asset's economic price through the years. The one fixed asset that isn't
depreciated is land as it seldom declines in fee.
Match the go with the flow to its descriptor
A. Investment Flows
B. Operating Flows
C. Financing Flows
Cash inflows and outflows at once associated with manufacturing and sale of services or
products
Cash flows related to the purchase or sale of fixed belongings and business fairness
The end result from debt and fairness financing transactions - ANSA. Investment Flows: Cash
flows related to the purchase or sale of constant assets and commercial enterprise equity
B. Operating Flows: Cash inflows and outflows without delay related to production and sale of
services or products
C. Financing Flows: The result from debt and equity financing transactions
The Income Statement - ANSEBIT: Other earnings, earned on transactions at once related to
generating and/or promoting the company's merchandise, is brought to running income to yield
profits before interest and taxes (EBIT). When a company has no "other earnings," its working
income and EBIT are identical.
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