Business Math

2. Type of insurance where the insurer and insured share the risks
7. A test of financial strength of a business. Calculated as:(current assets-inventory-prepaid expenses)/current liabilities
8. Periodic payments that an insured makes on their insurance policy
11. Total of all inventory divided by the number of inventory taken
14. A periodic inventory method "Last in, First out" meaning that the newest items get sold first
15. A periodic inventory method "First in, First out" meaning the oldest items get sold first
17. What an asset is worth. Calculated as: Asset Cost - Accumulated Depreciation
18. Ratio showing how quickly a company sells out of its inventory

1. a way to calculate the cost of equipment over its life, and track its decline each year
3. What a company paid for the purchases of an asset
4. The person designed to receive the face value of a life insurance policy if the insured dies
5. The number of years an asset will be in use
6. the amount of insurance stated on the policy. Usually also the maximum amount the insurance company will pay
9. The easiest way to Depreciate an asset. Divide depreciation equally over usable life of the asset
10. The amount the insured person pays out of pocket before the insurance company pays
12. Amount owed by costumer to a business for purchases made
13. Operating expenses not associated with a specific department or product. Often Fixed expenses (rather than variable)
16. Amount owed by a business to creditors for services or items purchased