Finance Flashcards
1
Q
Finical ratio function
A
Use to determine the overall performance of the business
2
Q
The 2 financial statement
A
1.Investment Statement(Statement of comprehension)
2.Balanced sheet(Statement of financial position)
3
Q
4 main Objective of the financial function
A
- Maximize profit
- Increase profitability
- Ensure liquidity-currency ratio & Acis test ratio
- Remain solvent-Solvency ratio
4
Q
The investment statement(Statement of comprehension) consists of?
A
- Net loss/profit
- Assets , Liabilities and Equity
5
Q
Insolvent means to business
A
They have more debts then assets they own
5
Q
Insolvent means to business
A
They have more debts then assets they own
6
Q
Profitability
A
Is net profit /owner equity * 100/1
7
Q
Liability
A
Is when a business have enough cash to cover its expenses
