FINAL EXAM Flashcards
(243 cards)
_____ is a retrospective (look back) recording of actual business transactions
Accounting
_____ is a prospective (look forward) evaluation or model of different possible outcomes
Finance
In ______, you use assumptions and estimates to make the most informed decision possible
Finance
In _______, you use journal entries, accounts, ledgers & ultimately financial statements to record past activity
Accounting
Ticket sales, broadcast contracts, concession sales, sponsorship agreements are an example of
Revenue
Player salaries, equipment, travel, rent, insurance are an example of
Expenses
An alternate measure of profitability to net income
EBITDA
Attempts to represent cash profit generated by the company’s operations
EBITDA
What does EBITDA stand for?
Earnings before interest, taxes, depreciation and amortization
What is an asset?
Provides a future economic benefit to the organization
What is a liability?
A promise to provide a future good or service
What is equity?
The initial capital invested in the business // accumulation of profit & loss over time
Balance sheet equation
(A=L+E) - Assets = liabilities + equity
What is a statement that shows movement of cash by account driver?
Cash flow statement
Three different types of cash flow
Operating, investing, financing
Total of _____ ______ statement represents total change in cash
from year to year
Cash flow
Who uses financial statements?
Executives, ownership, investors, stockholders, rating agencies, league offices
What are the four formatting things a financial statement must have?
Company name, name of the financial statement, period in which it occurs, units of measure
What is the difference between a balance sheet and an income statement?
Balance sheet is a point in time (picture) and an income statement is a period of time (movie)
An income statement may also be called
Cash flow statement
Income equation
Revenue - expenses
___ provide a future economic benefit
Assets
____ is money owed to the organization for services already rendered or goods provided
Accounts Receivable (AR)
Merchandise or raw materials purchased to be produced / packaged and sold at a later date
Inventory