1) is a method of spreading an intangible asset's cost over the course of its useful life. Intangible assets are non-physical assets that are essential to a company, such as a trademark, patent, copyright, or franchise agreement. a) Assets b) Current Assets c) Fixed Assets d) Amortization e) Asset Allocation f) Capital Gain 2) Firms that sell stocks and bonds to investors a) Institutional investors b) Companies c) Mutual funds d) Hedge funds e) Valuation 3) refers to the net balance of cash moving in and out of a business at a specific point in time. a) Cash Flow b) Cash Flow Statement c) Compound Interest d) Depreciation 4) often called shareholders’ equity or owners’ equity on a balance sheet, represents the amount of money that belongs to the owners of a business after all assets and liabilities have been accounted for. a) Liabilities b) Income Statement c) Equity 5) are items you own that can provide future benefit to your business, such as cash, inventory, real estate, office equipment, or accounts receivable, which are payments due to a company by its customers. a) Liabilities b) Amortization c) Equity d) Valuation e) Assets 6) is an increase in the value of an asset or investment above the price you initially paid for it. If you sell the asset for less than the original purchase price, that would be considered a capital loss. a) Assets b) Bonds c) Stocks d) Capital Gain e) Compound Interest 7) The opposite of assets, ... are what you owe other parties, such as bank debt, wages, and money due to suppliers, also known as accounts payable. a) Liabilities b) Income Statement c) Companies d) Fixed Assets e) Amortization 8) You can calculate net worth by subtracting what you own, your assets, with what you owe, your liabilities. a) Profit Margin b) Net Worth c) Gross Profit Margin d) Net Profit Margin

FINANCIAL TERMS TO KNOW

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