Finance Exam #1 Chapter 2


Chapter 2
  
Changes are done, please view the flashcard.

Preview Flashcards

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

Upgrade and get a lot more done!
Upgrade