SPMT 260 EXAM 2 (HUDSON) QUESTIONS AND CORRECT ANSWERS 100% VERIFIED!!, Exams of Advanced Education

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SPMT 260 EXAM 2 (HUDSON) QUESTIONS AND CORRECT ANSWERS 100% VERIFIED!! Sales vs. Added Value- ANSWER - There is a difference between an industry's sales and its value-added - Value-added is a more accurate statistic -Cost of raw materials and manufacturing are considered when calculating value-added What is Finance- ANSWER - No single, universally agreed-upon definition - Generally refers to two primary activities and organizations 41. How an organization generates the funds that flow into that organization 2. How these funds are allocated and spent once they are in the organization - ANSWER Funds raised by an organization through a variety of sources including tickets, merchandise, services, and sponsorships Expenses- ANSWER Funds spent to operate and organization such as salaries, equipment, utilities, food, travel and insurance Profit- ANSWER - more revenues than expenses - Can be enhanced by increasing revenues, decreasing costs, or both Income statement - ANSWER Summarizes an organizations revenues, expenses, and profits over a given period of time Assets - ANSWER Anything an organization owns that can be used to generate future revenues (facility, equipment)