Mha 706 Midterm Study Guide Questions And Correct Answers

capital structure {Ans: the right side of the balance sheet gives the business mix of debt and equity financing is key financing decision because it affects a business overall risk and cost of financing}income statement components {Ans: 1. revenue 2. expenses 3. non-operating income 4. taxes 5. net income}real asset {Ans: building, machine, equipment}net working capital {Ans: networking capital = current assets - current liabilities}Generally accepted accounting principles (GAP) {Ans: the conventions that have evolved from the pronouncements and ruling of the implementing organization constitute a set of guidelines for the preparation of financial accounting statements}if you have net income {Ans: this flows into bank statement under retained earnings}