Ebit - Study guides, Class notes & Summaries

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - F Stocks and bonds are two types of financial instruments (T/F) - T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large enough to match exp...

ACCOUNTING DEBITS AND CREDITS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024

Advanced Strategic Management Final Exam (BBA4) Questions With Correct Solutions Gross Profit Sales - Cost of Goods Sold COGS - direct costs attributed to the production, do not include cost of sales, ads or transportation Operating Profit EBIT = Net Sales - COGS - OPEX OPEX - cost that help operating the business including salaries, rent, marketing, cost of sales OPEX and SG&A are the same Return on Sales ROS (%) = EBIT / Sales How much profit is being per 1$ of sales. (how ef...

2024 Transaction Comps Modeling Wall Street / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam Pass A+ If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected SG&A expenses of $2billion, what is the company's operating (EBIT) margin? - ANSWER-45% A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts receivable of $400 million, 2014 accounts receivable of $600 million, what are the day...

Accounting 211 exam 1 Debits and CreditsAssets - correct answer increase with debits decrease with credit Liabilities - correct answer decrease with debits increase with credits Shareholder's equity - correct answer decrease with debits increase with credits Normal balance - correct answer increase side of t-chart Revenues Expenses - correct answer increase shareholders' equity = credit decrease shareholders' equity = debit The accounting cylce - correct answer 1. Analyze...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer F Stocks and bonds are two types of financial instruments (T/F) - Answer T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be la...

Harvard Financial Accounting CORE Test Questions and Answers FIFO - Answer-An inventory valuation method which determines the value of inventory sold as if the current units sold are the oldest units remaining in the inventory (FIFO). In a period of steadily rising inventory costs, this method leaves the higher costs in the inventory account and recognizes the older, lower costs as an expense in COGS. Fiscal Year - Answer-The twelve month period over which the financial results of a company...

Order of making financial statements - ANS 1) Income statement actuals and predictions (minus D&A, interest expense income) 2) Cash flow statement actuals (link net income and depreciation from income statement) and predictions (minus changes in operating working capital and cash flows from financing activities) 3) Balance sheet actuals 4) Depreciation schedule 5) Link depreciation into income statement 6) Operating working capital 7) Link OWC into cash flow statement changes in OWC 8...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer-F Stocks and bonds are two types of financial instruments (T/F) - Answer-T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large enough...

How do you calculate FCF> - Answer-FCF = EBIT x (1-t) +D&A-capex-change in NWC How do you determine which of the valuation methodologies to use? - Answer-The best way to determine the value of a company is to use a combination of all the methodologies and zero in on an appropriate valuation. If you have a precedent transaction you feel is extremely accurate, you may give that more weight if you are extremely confident in your DCF you may give that more weight. Valuing a company is as muc...