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CIE 10/4 Flashcards | StudBud
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CIE 10/4
CIE 10/4
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Answers
1
What causes the price of certain items to be what they are?
Neither A nor B
The cost of making the object
The demand of the object
Both A & B
2
The Income Statement Equation is (Net Income = Revenue - Expense)
False
True
3
What is a stock?
An amount of money given to the company in return for profits
A job at the company
A role in a company (president, etc.)
A part of the ownership of a company
4
What is inflation?
An overall rise in the general price of goods and services
When the value of the local currency goes up
The rate at which the economy grows
When the market collectively heads into a bullish direction
5
If a company files for bankruptcy, which security is most at risk of being worthless?
Company's common stock
Company's bonds
Company's preferred stock
Company's loans
6
Which of the following economic downturns coincided with the unprecedented growth of the internet?
Dot-com bubble
Asian Financial Crisis
Wall Street Crash of 1929
Bank Stock Crisis
7
Which of the following is a cost that changes based on your choices?
Utility Expense
Liability
Fixed Expense
Variable Expense
8
When the market collectively rises, it is a:
An expansive market
Bearish Market
Bullish market
aN eXcItEd mArKeT :):)
9
What is the Balance Sheet Equation? (A = Assets, E = Equity, L = Liabilities)
Net Income = Revenue + Expense
A = L + E
A = L - E
Net Income = Revenue - Expense
10
Which of the following is NOT an asset?
Cash
Capital Stock
Inventory
Patents
11
What is an option?
Pre-orders for a stock that hasn't had an IPO yet
The option to buy a share 20 dollars under what the share price is
When you hold a share of a company for a long time
You agree to buy or sell the stock at a predetermined price at a later time
12
What is the stock market?
A place to only buy stocks
A marketplace for companies to sell their products
A representation of the US economy
A center of markets where securities can be bought and sold
13
Read picture:
Revenue
Gross Profit
Profit
Opportunity Cost