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A financial statement that
reflects a firm’s
accounting value on a particular date |
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Balance Sheet |
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An asset that normally converts into cash within one year |
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Current Asset |
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An asset with a relatively long life |
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Fixed Asset |
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A fixed asset with a physical existence |
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Tangible Asset |
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A fixed asset that has no physical existence |
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Intangible Asset |
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the residual value of a
corporation after all debts have been paid |
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Shareholders Equity |
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difference between a firm’s
current assets and its current liabilities |
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Net Working Captial |
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ease and speed with which
an asset can be converted to cash |
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Liquidity |
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a common set of procedures
and standards for preparing audited financial statements |
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Generally Accepted Accounting Principles |
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reflects a firm’s
performance over a period of time |
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Income Statement |
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amount of net income
attributable to each share of stock |
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Earnings Per Share |
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an expense charged against
revenues that does not affect the cash flow of a firm |
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Noncash Items |
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total tax paid divided by
the total taxable income |
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Average Tax Rate |
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amount of tax payable on
the next taxable dollar earned |
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Marginal Tax Rate |
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The cash generated from a
firm’s normal business activities is referred to as the |
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Operating Cashflow |
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cash available to
distribute to the creditors and to the stockholders |
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Cash Flow from Assets |
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The net amount of a firm’s
cash flows that are spent on fixed assets is called |
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Net Capital Spending |
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cash flow from assets |
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Free Cash Flow |
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interest paid minus net new
borrowing |
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Cash Flow to Creditors |
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The amount of the dividends
paid minus the net new equity raised is called the |
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Cash Flow to Stockholders |
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