Business Certifications Financial Management & Budgeting Flashcards
6 cards from real Business Certifications practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business Certifications Financial Management & Budgeting flashcards as text
What does EBITDA stand for?
Answer: Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and is commonly used to evaluate core operating performance.
In financial forecasting, a "rolling forecast" means:
Answer: A forecast that is continuously updated to cover a fixed future horizon
A rolling forecast is continuously updated to maintain a fixed forward-looking horizon (e.g., 12 months ahead) as each period passes.
Accounts payable in financial management refers to:
Answer: Money the company owes to its suppliers for goods or services received
Accounts payable represents amounts a company owes to its suppliers for goods or services it has received but not yet paid for.
A company's gross profit is calculated as:
Answer: Revenue minus cost of goods sold (COGS)
Gross profit equals revenue minus the cost of goods sold (COGS), before subtracting operating expenses such as salaries or rent.
What is the primary purpose of a financial audit?
Answer: To provide an independent assessment of financial statement accuracy
A financial audit provides an independent, objective examination of an organization's financial statements to ensure they are accurate and compliant with accounting standards.
Depreciation in accounting represents:
Answer: The systematic allocation of an asset's cost over its useful life
Depreciation is the systematic allocation of a tangible asset's cost over its useful life to match expense recognition with the revenue the asset helps generate.