Name: Score:
56 Multiple choice questions
Term 1 of 56
Asset Turnover
Sales Revenue minus COGS.
Revenue/Average Assets
Gross Profit/revenue =gross Profit Margin
365/ar Turnover =365/(credit Sales/ Average Ar Balance)
Definition 2 of 56
Incorrectly rejecting a true null hypothesis (e.g. concluding that there is a difference between two
groups when there is not one); also called a false positive.
Type ii error.
Type two error
Type 1 error
Type ii error
Definition 3 of 56
The discount rate that sets the net present value (NPV) of a project equal to zero. The IRR allows
us to find the percentage rate that would be earned for a given set of cash flows.
Return on investment (roi)
Internal Rate of Return (IRR)
Net present value (npv)
Price elasticity of demand
,Definition 4 of 56
Can be interpreted as the probability, assuming the hypothesis is true, of obtaining an outcome
that is equal to or more extreme than the result obtained from a data sample.
The lower the p-value, the greater the strength of statistical evidence against the null hypothesis.
P-value
Expected Value
Type Ii Error
R-squared
Definition 5 of 56
Shows a company's financial performance, because it shows the accumulation of all nominal
accounts over a period of time.
Income Statement
Statement Of Retained Earnings
Liabilities
Gross Profit
Definition 6 of 56
A contra-asset.
Retained Earnings
Accumulated Depreciation
Depreciation Expense
Revenue
, Term 7 of 56
Demand Curve
A phenomenon that occurs in auctions in which the winner of the auction will tend to pay
more for a product or service than its true value.
(Net Income/Sales ) measures the ability of a company to make a profit relative to revenue
generated during a period. A Profit Margin of 19% tells us that for every $100 in sales, $19
ended up in Net Income.
The demand curve is a downward sloping line, which relates price and quantity demanded.
The negative slope results from the inverse relationship between price and quantity
demanded-as one goes up, the other goes down.
The amount shown on the Income Statement after all expenses have been taken away from
the revenue for the period but before any tax expense for the period. May also be referred
to as Pretax Profit.
Definition 8 of 56
A method for calculating the terminal value of an indefinite stream of cash flows. The calculation
gives the present value of infinite cash flows by dividing the cash flow in the final year of our
projection by the difference between the discount rate and the growth rate.
Gordon Growth Model
Perpetuity Model
Net Present Value
Sustainable Growth Rate
Definition 9 of 56
The amount of money received by a company or firm from sales of its products or service.
Revenue
Inventory Turnover
Income Statement
Profit
56 Multiple choice questions
Term 1 of 56
Asset Turnover
Sales Revenue minus COGS.
Revenue/Average Assets
Gross Profit/revenue =gross Profit Margin
365/ar Turnover =365/(credit Sales/ Average Ar Balance)
Definition 2 of 56
Incorrectly rejecting a true null hypothesis (e.g. concluding that there is a difference between two
groups when there is not one); also called a false positive.
Type ii error.
Type two error
Type 1 error
Type ii error
Definition 3 of 56
The discount rate that sets the net present value (NPV) of a project equal to zero. The IRR allows
us to find the percentage rate that would be earned for a given set of cash flows.
Return on investment (roi)
Internal Rate of Return (IRR)
Net present value (npv)
Price elasticity of demand
,Definition 4 of 56
Can be interpreted as the probability, assuming the hypothesis is true, of obtaining an outcome
that is equal to or more extreme than the result obtained from a data sample.
The lower the p-value, the greater the strength of statistical evidence against the null hypothesis.
P-value
Expected Value
Type Ii Error
R-squared
Definition 5 of 56
Shows a company's financial performance, because it shows the accumulation of all nominal
accounts over a period of time.
Income Statement
Statement Of Retained Earnings
Liabilities
Gross Profit
Definition 6 of 56
A contra-asset.
Retained Earnings
Accumulated Depreciation
Depreciation Expense
Revenue
, Term 7 of 56
Demand Curve
A phenomenon that occurs in auctions in which the winner of the auction will tend to pay
more for a product or service than its true value.
(Net Income/Sales ) measures the ability of a company to make a profit relative to revenue
generated during a period. A Profit Margin of 19% tells us that for every $100 in sales, $19
ended up in Net Income.
The demand curve is a downward sloping line, which relates price and quantity demanded.
The negative slope results from the inverse relationship between price and quantity
demanded-as one goes up, the other goes down.
The amount shown on the Income Statement after all expenses have been taken away from
the revenue for the period but before any tax expense for the period. May also be referred
to as Pretax Profit.
Definition 8 of 56
A method for calculating the terminal value of an indefinite stream of cash flows. The calculation
gives the present value of infinite cash flows by dividing the cash flow in the final year of our
projection by the difference between the discount rate and the growth rate.
Gordon Growth Model
Perpetuity Model
Net Present Value
Sustainable Growth Rate
Definition 9 of 56
The amount of money received by a company or firm from sales of its products or service.
Revenue
Inventory Turnover
Income Statement
Profit
