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BMAL-590 Business Finance Exam Questions and Answers $12.99   Add to cart

Exam (elaborations)

BMAL-590 Business Finance Exam Questions and Answers

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  • Course
  • BMAL 590
  • Institution
  • BMAL 590

BMAL-590 Business Finance Exam Questions and Answers

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  • October 28, 2024
  • 25
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BMAL 590
  • BMAL 590
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millyphilip
BMAL-590 Business Finance Exam
Questions and Answers

Generally iiAccepted iiAccounting iiPrinciples ii(GAAP) ii- iiAnswers ii-a iiset iiof iiaccounting
iistandards iithat iiis iiused iiin iithe iipreparation iiof iifinancial iistatements


developed iiby iithe iiFinancial iiAccounting iiStandards iiBoard ii(FASB)

Financial iiAccounting iiStandards iiBoard ii(FASB) ii- iiAnswers ii-The iiprimary iiaccounting
iistandard-setting iibody iiin iithe iiUnited iiStates.


examines iicontroversial iiaccounting iitopics iiand iiissues iistandards iithat, iiin iiterms iiof
iitheir iiimpact iion iiaccounting iipractices, iialmost iihave iithe iiforce iiof iilaw.


Securities iiand iiExchange iiCommission ii(SEC) ii- iiAnswers ii-The iiagency iiof iithe iiU.S.
iigovernment iithat iioversees iiU.S. iifinancial iimarkets iiand iiaccounting iistandard-setting
iibodies.


regulates iipublicly iitraded iiU.S. iicompanies iias iiwell iias iithe iination's iistock iiand iibond
iimarkets. iiIt iimandates iithat iicompanies iigenerate iifinancial iistatements iifollowing
iiinternational iiaccounting iistandards ii(IAS)


The iiSEC iirequires iifour iikey iifinancial iistatements: ii
(1) iithe iibalance iisheet
(2) iithe iiincome iistatement
(3) iithe iistatement iiof iiretained iiearnings
(4) iithe iistatement iiof iicash iiflows

Public iiCompany iiAccounting iiOversight iiBoard ii(PCAOB) ii- iiAnswers ii-The iigroup
iicharged iiwith iidetermining iiauditing iistandards iiand iireviewing iithe iiperformance iiof
iiauditing iifirms. iiIt iieffectively iigives iithe iiSEC iiauthority iito iioversee iithe iiaccounting
iiprofession's iiactivities


Established iiby iithe iiSarbanes-Oxley iiAct iiof ii2002

International iiFinancial iiReporting iiStandards ii(IFRS) ii- iiAnswers ii-used iiin iimany
iicountries iias iithe iiregulatory iibasis iifor iithe iipreparation iiof iifinancial iistatements. iiThey
iiare iidesigned iito iiprovide iia iicommon iiglobal iilanguage iifor iifinancial iireporting,
iiparticularly iiin iithe iiEuropean iiUnion, iiso iipublished iifinancial iiinformation iiis
iicomparable iiacross iiinternational iiboundaries.

,A iifirm's iibalance iisheet ii- iiAnswers ii-presents iia ii"snapshot" iiview iiof iithe iicompany's
iifinancial iiposition iiat iia iispecific iimoment iiin iitime. ii


By iidefinition, iia iifirm's iiassets iimust iiequal iithe iicombined iivalue iiof iiits iiliabilities iiand
iistockholders' iiequity. ii


The iibasic iibalance iisheet iiequation iiis iiAssets ii= iiLiabilities ii+ iiStockholders' iiEquity.
iiThus, iicreditors iiand iiequity iiinvestors iifinance iiall iiof iia iifirm's iiassets.


The iibalance iisheet iiconsist iiof iithree iisections iithat iilist iia iifirm's iiassets iiand iiliabilities
iias iiwell iias iithe iiclaims iiof iithe iistockholders.


ssets iiand iiliabilities iiappear iiin iidescending iiorder iiof iiliquidity,

Liquidity ii- iiAnswers ii-The iilength iiof iitime iiit iitakes iito iiconvert iiaccounts iiinto iicash
iiduring iithe iinormal iicourse iiof iibusiness. iiThe iimost iiliquid iiasset ii(cash) iiappears iifirst,
iiand iithe iileast iiliquid ii(fixed iiassets) iicomes iilast.


Current iiassets iiare iithose iithat iiare iieasy iito iisell iiand iiturn iiinto iicash, iiwhile iifixed
iiassets iiare iiphysical iiassets iilike iibuildings iiand iiequipment.


Assets ii- iiAnswers ii-include iieverything iithat iican iibe iiused iito iibenefit iithe iibusiness iior
iigive iithe iicompany iithe iiright iito iireceive iibenefits


Current iiLiabilities ii- iiAnswers ii-those iithat iimust iibe iipaid iiwithin iione iiyear iiand iiinclude
iiaccounts iipayable, iinotes iipayable, iiand iiaccrued iiexpenses


Long-term iiliabilities ii- iiAnswers ii-due iiafter iimore iithan iia iiyear iiand iiinclude iideferred
iitaxes iiand iilong-term iidebt.


stockholders' iiequity ii- iiAnswers ii-The iilast iientry iion iithe iibalance iisheet, iistockholders'
iiequity iiis iithe iiowners' iiresidual iishare iiof iithe iibusiness, iiincluding iitheir iioriginal
iiinvestment iiplus iiany iimoney iithe iifirm iihas iiearned iiand iiretained iisince iiits iiinception.


Stockholders' iiequity iiincludes iipreferred iistock, iicommon iistock, iipaid-in-capital iiin
iiexcess iiof iipar, iiand iiretained iiearnings. iiHowever, iithe iinet iiworth iiof iithe iifirm iiincludes
iionly iithe iicommon iistock, iipaid-in-capital iiin iiexcess iiof iipar, iiand iiretained iiearning.


Balance iiSheet iiAssets ii- iiAnswers ii--organized iiin iiorder iiof iiliquidity:

1. iiCurrent iiAssets
-includes iiall iicash iiand iiitems iiexpected iito iibe iiconverted iiinto iicash iiin iinext ii12
iimonths
A. iiCash iiand iiEquivalents ii- iimoney iimarket
B. iiAccounts iiReceivable ii- iiamounts iidue iifrom iicustomers
C. iiInventory ii- iicost iiof iiraw iimaterials

, D. iiPrepaid iiExpenses ii- iirents, iitaxes, iiprepaid iiadvertising ii

2. iiFixed iiAssets
A. iiProperty iiPlant iiand iiEquipment
-factories

3. iiOther iiAssets
A. iiIntangible iiAssets
-brand iinames, iitrademarks, iiformulas, iietc

Cash iiand iicash iiequivalents ii- iiAnswers ii-assets iisuch iias iichecking iiaccount iibalances
iiat iicommercial iibanks iithat iican iibe iiused iidirectly iias iimeans iiof iipayment.


Marketable iisecurities ii- iiAnswers ii-represent iiliquid iishort-term iiinvestments, iiwhich
iifinancial iianalysts iiview iias iia iiform iiof ii"near iicash." iiThey iiinclude iiTreasury iinotes,
iicommercial iipaper, iiand iiothers.


Accounts iireceivable ii- iiAnswers ii-represent iithe iiamount iicustomers iiowe iithe iifirm iifrom
iisales iimade iion iicredit.


Inventories ii- iiAnswers ii-include iiraw iimaterials, iiwork iiin iiprocess ii(partially iifinished
iigoods), iiand iifinished iigoods iiheld iiby iithe iifirm.


Intangible iiassets ii- iiAnswers ii-items iisuch iias iipatents, iitrademarks, iicopyrights, iior
iimineral iirights iientitling iithe iicompany iito iiextract iioil iiand iigas iion iispecific iiproperties.


Gross iiproperty, iiplant, iiand iiequipment ii(PP&E) ii- iiAnswers ii-the iioriginal iicost iiof iiall
iireal iiproperty, iistructures, iiand iilong-lived iiequipment iiowned iiby iithe iifirm.


Net iiproperty, iiplant, iiand iiequipment ii- iiAnswers ii-calculated iias iiGross iiPP&E iiless
iiaccumulated iidepreciation ii- iithe iicumulative iiexpense iirecorded iifor iithe iidepreciation
iiof iifixed iiassets iisince iitheir iipurchase; iithis iireflects iia iidecline iiin iithe iiasset's
iieconomic iivalue iiover iitime. iiThe iione iifixed iiasset iithat iiis iinot iidepreciated iiis iiland
iibecause iiit iiseldom iideclines iiin iivalue.


"book iivalue" ii- iiAnswers ii-Net iiPP&E iion iithe iibalance iisheet iiis iithe iitotal ii"book iivalue"
iiof iithe iiassets, iiwhich iiis iithe iioriginal iicost iiof iithe iiassets iiless iiaccumulated
iidepreciation iito iidate. iiDepreciation iiis iitaken iiaccording iito iistandardized iiformulas iiand
iidoes iinot iireflect iithe iireduction iiin iiactual iivalue iiof iithe iiassets iiwhich iican iivary iifor
iimany iireasons.


Liabilities ii- iiAnswers ii-debts iithat iithe iifirm iiowes iito iiothers

current iiliabilities iion iithe iibalance iisheet iiinclude iithree iitypes iiof iiaccounts: ii- iiAnswers
ii-Accounts iiPayable
Notes iiPayable

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