Monique Nevarez

BFIN 2110 – Vocabulary Quiz#1 – Based on Exercises#1 #2 #3 & Zoom Video

Recordings Going Over Exercises#1 #2 #3
(Please Bold & Color Your Answers – Light Yellow or Blue for Easier
Grading)

 1. What is the name of the instructor for this class?

The instructor’s name is Kent Tucker!

 2. What is another name for Earnings After Taxes?

Another name for Earnings after taxis is EAT or net income.

 3. EBT = Earnings Before Taxes

 4. EBIT = Earnings Before Interest and Taxes

 5. EBITDA = Earnings Before Interest and Taxes and Depreciation and

Amortization

 6. What is another name for an Income Statement? (Hint-“P&LS”).

It can also be known as a Profit and Loss Statement

 7. What color is associated with Net Income?

Typically, Green is associated with net income

 8. What color is associated with Net Loss?

Net loss can be associated with the color Red

 9. Treasury Bills and short-term Certificates of Deposit are what category of

account on a Balance Sheet? (Hint – do not list “Assets” or “Current
Assets”).
They should be reported under the Cash part of a balance sheet
because it is short term.
 10. Straight Line, Sum of the Years Digits and Double Declining Balance
are examples of what type of Expense on an Income Statement?
They are all Depreciation and Amortization examples.

 11. Sales – Cost of Goods Sold = Gross Profit

 12. Assets – Liabilities = (Sole Proprietorship) Owners Equity

 13. Assets – Liabilities = (Corporation) Shareholders Equity

 14. Net Income – Preferred Stock Dividends/# Shares Outstanding =

Earnings per Share

 15.The increase in shares outstanding of a corporation from the effects of

stock options and convertible bonds?
Diluted earnings per shares

 16. A type of Expense dealing with Patents, Copyrights and Trademarks?

The expense known as intangible assets

 17. SGA X = (Hint – Exercise#3)

Selling, General, and Administrative X

 18. Pretax Income is another name for what?

EBT (Earnings Before Tax) is another name for pretax income

 19. Plant and Equipment – Accumulated Depreciation = Net Plant and

Equiptment

 20. Preferred Stock + Common Stock + Treasury Stock + Retained Earnings

= Stockholders Equity

 21. EPS = Earnings Per share

 22. Accounts Payable + Notes Payable + Accrued Expenses = Current

Liabilites

 23. Another name for Cost of Goods Sold?

Cost of sale
 24. The number of shares issued of a corporation = Outstanding Shares

 25. Gross Profit/Sales = Gross profit Margin

 26. Net Earnings/Sales = Net Profit Margin

 27. Earnings After Taxes – Preferred Stock Dividends = Earnings

Available to common Stockholders

 28. Accounts Receivable – Allowance for Bad Debts = Net Receivables

 29. Liabilities + Stockholders Equity = Total Assets

 30. What two accounts are on an Income Statement?

Operating Revenues and Expenses

 31. What three accounts are on a Balance Sheet?

Assets, Liabilities and Equity

 32. Operating Profit/Sales = Operating Margin

 33. Preferred Stock Dividends are found on which financial statement?

Can be found on both Income Statements and Balance Sheets

 34. Common Stock Dividends are found on which financial statement?

Can be found on both Income Statements and Balance Sheets

 35. The Revenue account for a service company? (Hint – do not list Sales).
(Hint – FXXX)
It is a Operating revenue account

 36. What symbol starts Excel formulas for this course off of the keyboard?
The equal sign (=)

 37. What symbol is used for divide off of the keyboard for Excel?
 The forward slash (/)

 38. What symbol is used for multiplication off of the keyboard for Excel?
The asterisk (*)
 39. Gross Profit – Selling & Administrative Expense – Depreciation &
Amortization Expense = Operating income AKA operating profit

 40. Gross Profit + Cost of Goods Sold = Sales

 41. Investments off of the Balance Sheet is what category of account?

Current Assets

 42. Cash + Marketable Securities + Net Receivables + Inventory + Prepaid

Expenses = Total Current assets

 43. Dividends, Gains and Losses on the Sale of Marketable Securities &
Investments, gains and losses on currency transactions, bank charges and
sale of a fixed asset are referred to as?
Interest Income (Expense)

 44. Bonds that can be converted into a fixed number of shares of common
stock at periodic time intervals are referred to as?
Long-term Liabilities

 45. Total Current Assets + Other Assets + Fixed Assets = Total Assets

 46. What type of account is Accumulated Depreciation? (Hint – “CA”) Do

not list Current Asset.
Contra Asset Account

 47. Paying the Rent a year in advance for a company is an example of what
type of account?
Prepaid Expenses

 48. A short term loan from a bank is an example of what type of account?
Current Liability Account
  49. Money left over after all expenses and Preferred Stock Dividends and
Common Stock Dividends have been paid?
Capitol paid in excess of stock

 50. Current Liabilities + Long Term Liabilities = Total Liabilities

 51. Net Earnings/# Shares Outstanding = Earnings Per Share (EPS)

 52. Is Diluted Earnings Per Share higher or lower than Earnings Per Share?
Lower than earnings per share

 53. Earnings Before Taxes (EBT) is another name for what?

Pretax income

 54. What Account is Stock Buy Backs on the Balance Sheet? (Hint – do not
list “Stockholders Equity”).
Treasury Stock

 55. Does stock Buy Backs – Increase or Decrease the Earnings Per Share
Ratio?
The stocks earnings per share ratio will increase

 56. Which type of stock pays the same dividend amount each year?
` Preferred Stock

 57. Which type of stock pays no dividends or if they pay dividends, they
decide each years how much that dollar amount will be?
Common Stock

 58. How many times a year are dividends paid?

They are paid quarterly which means they go out 4 times a year

 59. What type of assets are – Cash, Marketable Securities, Accounts

Receivable and Inventory?
Current Assets

 60. What type of assets are – Building, Land, and Equipment? (Hint –
“FA”)
Fixed assets
 61. Cost of Goods Sold + Gross Profit = Sales

 62. What type of asset is Allowance for Bad Debts? (Hint – “CA”). Do not
list Current Asset.
A Contra Asset

 63. What type of Expense is paying a year’s worth of Rent or Insurance

called? (Hint – “Pxxxxxx Expense)
A prepaid Expense

 64. A company that buys another companies Accounts Receivable is called

what?
Dividend account

 65. What is the process of a company buying another companies Accounts

Receivable?
Account Receivable Factoring

END OF BFIN 2110 - VOCABULARY QUIZ#1