A - CORRECT ANSWER: - Actual Exam from Credible Sources with Question...

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A - CORRECT ANSWER:

Accounts Payable Turnover - CORRECT ANSWER: Credit Purchases/Average

Accounts Payable Balance.

Accumulated Depreciation - CORRECT ANSWER: A contra-asset.

Adjusted R-squared - CORRECT ANSWER: Adjusted R-Squared is equal to R-squared

multiplied by an adjustment factor that decreases slightly as each independent variable is added to a regression model.

Use to compare two regression models that have a different number of independent variables.

Asset Turnover - CORRECT ANSWER: Revenue/Average Assets

Asset/Expense Accounts - CORRECT ANSWER: Asset and expense accounts increase

with debit and decrease with credit.

Average Collection Period - CORRECT ANSWER: 365/AR Turnover =365/(Credit Sales/

Average AR Balance)

Building an income statement. - CORRECT ANSWER: 1. Revenue-COGS

• Less Operating Expenses
• Subtract interest expense to get Income before taxes. 1 / 2

• Finally subtract tax expense to get net income.

Cash Conversion Cycle - CORRECT ANSWER: is a measure of how long it takes a

business from the time it has to pay for inventory from its suppliers until it collects cash from its customers.

It can be calculated as Days Inventory, plus the Average Collection Period, minus the Days Purchases Outstanding.

Cash Conversion Cycle (CCC) - CORRECT ANSWER: The number of days between

when a company pays for inventory purchases and when a company collects from customers.

Not measured by the DuPont Framework.

Central Limit Theorem - CORRECT ANSWER: If we take a large enough samples, the

distribution of sample means will be normally distributed regardless of the shape of the underlying population.

Consumer Surplus - CORRECT ANSWER: is the difference between WTP and the

price.

Is defined as the difference between equilibrium price and willingness to pay.

Cross Price Elasticity - CORRECT ANSWER: is the percent change in quantity

demanded of one good (-5%) divided by the percent change in price of the other good (25%). A negative cross price elasticity indicates that the goods are complements.

A positive cross-price elasticity means the goods are substitutes.

Unrelated goods have a cross-price elasticity close to zero.

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