Financial Terms IV

What is an asset?

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• A financial strategy that aims to balance risk and reward by apportioning a portfolio's assets.

• Revenue received for goods or services, or from other sources, such as rents or investments.

• An obligation of a company that results in the company's future sacrifices of economic benefits to other entities or businesses.

What does liability refer to in financial terms?

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

• An obligation of a company that results in the company's future sacrifices of economic benefits to other entities or businesses.

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• The process of documenting and communicating financial activities and performance over specific time periods.

What is compound interest?

• A charge usually of money imposed by authority on persons or property for public purposes.

• The outlay of money usually for income or profit; the sum invested or the property purchased.

• Interest computed on the sum of an original principal and accrued interest; compound interest is the interest you earn on interest.

• The process of documenting and communicating financial activities and performance over specific time periods.

What is a mortgage?

• A financial burden or outlay; an item of business outlay chargeable against revenue for a specific period.

• A conveyance of or lien against property that becomes void upon payment or performance according to stipulated items.

• The sum of the after-tax profit of a business plus depreciation and other non-cash charges.

• An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets among different assets.

What is the purpose of a cash flow statement?

• To document and communicate financial activities and performance over specific time periods.

• To measure an organization's liquidity that usually consists of net income.

• To impose a charge of money by authority on persons or property for public purposes.

• To compute interest on the sum of an original principal and accrued interest.

What is the primary purpose of a financial report?

• To measure an organization's liquidity that usually consists of net income.

• To document and communicate financial activities and performance over specific time periods.

• To impose a charge of money by authority on persons or property for public purposes.

• To provide a financial burden or outlay; an item of business outlay chargeable against revenue for a specific period.

What is income typically derived from?

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• Revenue received for goods or services, or from other sources, such as rents or investments; the money, or amount of money, received from one’s employment.

• An obligation of a company that results in the company's future sacrifices of economic benefits to other entities or businesses.

• A financial strategy that aims to balance risk and reward by apportioning a portfolio's assets.

What is asset allocation?

• The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

• A financial burden or outlay; an item of business outlay chargeable against revenue for a specific period.

• Revenue received for goods or services, or from other sources, such as rents or investments.

• An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets among different assets, such as stocks, bonds, and cash.

What does "Accounts Receivable" refer to in financial terms?

• The balance of money owed by a company to its creditors

• The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers

• A statement of financial condition at a given date

• The quality or state of being bankrupt

What is a "Balance Sheet"?

• A three-digit number based on credit reports

• An estimate of expected income and expenses for a future period

• A statement of financial condition showing debit and credit balances as equal

• A charge for borrowed money