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AFM 132 Questions and Correct Answers
AFM 132 Questions and Correct Answers
[Show more]AFM 132 Questions and Correct Answers
[Show more]Expenses 
Ans Costs involved in running the company, and are resources used with no residual 
economic value to recognize 
General expenses 
Ans Costs such as rent, utilities and supplies used 
Gross margin 
Ans Calculated by taking revenues less COGS, shows how much is earned by making/selling 
p...
Preview 4 out of 46 pages
Add to cartExpenses 
Ans Costs involved in running the company, and are resources used with no residual 
economic value to recognize 
General expenses 
Ans Costs such as rent, utilities and supplies used 
Gross margin 
Ans Calculated by taking revenues less COGS, shows how much is earned by making/selling 
p...
Retained earnings 
Ans Accumulated earnings retained and not paid out to shareholders. 
Leverage ratios 
Ans Evaluate how much a company uses borrowed funds in their operations compared to 
investments made by owners. 
Debt to asset ratio 
Ans Total liabilities/Total assets 
Debt to equity ratio 
A...
Preview 4 out of 45 pages
Add to cartRetained earnings 
Ans Accumulated earnings retained and not paid out to shareholders. 
Leverage ratios 
Ans Evaluate how much a company uses borrowed funds in their operations compared to 
investments made by owners. 
Debt to asset ratio 
Ans Total liabilities/Total assets 
Debt to equity ratio 
A...
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