ESB Exam Study Guide QUESTIONS AND ANSWERS(SCORES 100%)

Document Content and Description Below

ESB Exam Study Guide Acquisition Cost Correct Answer: the cost of obtaining data that you don't have Contingency costs Correct Answer: amount of money included to cover potential events that... are not specifically accounted for in a cost estimate Variable Cost Correct Answer: a cost that rises or falls depending on how much is produced fixed costs Correct Answer: costs that do not vary with production or sales level pro forma Correct Answer: financial statement Small Business Administration (SBA) Correct Answer: government agency that helps small business owners develop business plans and obtain financing Limited Liability Company (LLC) Correct Answer: a form of business ownership that offers both limited liability to its owners and flexible tax treatment S cooperation Correct Answer: a small business entity that is created under state laws liquid assets Correct Answer: cash and items that can be quickly converted to cash Assets Correct Answer: resources owned by a business dividend Correct Answer: The portion of corporate profits paid out to stockholders liability Correct Answer: An amount owed by a business Net Income Correct Answer: the difference between total revenue and total expenses when total revenue is greater shareholder Correct Answer: Individual who owns part of a corporation account payable Correct Answer: money owed for products and services purchased on credit Accounts Receivable Correct Answer: Amounts to be received in the future due to the sale of goods or services Angel Investors Correct Answer: individuals who invest in start-up companies with high growth potential in exchange for a share of ownership Bonds Correct Answer: Certificates of debt that carry a promise to buy back the bonds at a higher price Capital/Equity Correct Answer: Funds contributed by investors to a business. capital expenditures Correct Answer: Expenditures on equipment the business will use for many years. equity capital Correct Answer: money that a business gets from its owners in order to operate fiscal year Correct Answer: A fiscal period consisting of 12 consecutive months. Crowdfunding Correct Answer: using social networking to appeal to potential investors Guarantor Correct Answer: a person who agrees to pay a debt if the primary debtor does not Income Statement Equation Correct Answer: Revenues - Expenses = Net Income Income Statement Correct Answer: A financial statement showing the revenue and expenses for a fiscal period Current Ratio Correct Answer: current assets d [Show More]

Last updated: 1 year ago

Preview 1 out of 4 pages