問題一覧
1
source of information for company management, employee, owner and investors FINANCIAL STATUS OF THE BUSINESS
financial statement
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a statement of revenue, sales fees or earning of business organization
income statement
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it consumes finacial slack may decrease debt rating and increase cost of debt
issue of debt
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process of deciding which projects a company should invest in to help the business to grow
capital budgeting
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used to provide info that will enable the FINANCIAL PERFORMANCE AND FINANCIAL POSITION OF THE COMPANY
financing statement
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concerned with setting of criteria about which value adding projects should recieve INVESTEMENT FUNDING (equity or debt capital)
investment analysis
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a FINANCIAL DESCRIPTION of assets, liabilities and equity net worth
balance sheet
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the difference between REVENUE AND COST producing goods and service
gross profit
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reflection of CASH OUT FLOW AND IN FLOW bring the ending balance either positive or not
Cash flow
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the total revenue in accounting period MINUS expenses during the same period
net income
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avoid long lives assets SHORT TERM BORROWING
maturity hedging
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the company must try to DECREASE inventory and recievable time oeriod and delay payments supplier
decrease cash cycle
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maintaining CASH RESERVE AND SHORT TERM LIABILITIES reduce financial distress
Cash reserves
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cash budget gives manager HEADS UP when short term financing is needed
cash budgeting
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for the growth of business organization FINANCIAL PLANNING IS VITAL MAXIMIZING PROFIT
financial goals and plans
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is critical that long term planning as there is certainty that the visio mission and goasl
short term planning
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small business must account for inflationehen evaluating investment oltion through capital budgeting
inflation
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when inlfation decrease the time value money
falls
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the area of finance dealing with sources of funding the capital structure of corporations
corporate finance
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the primary goal of corporate finance is
maximize or increase sharehokders value
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is the reporting of historical financial information
financial accounting
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is concerned with allocation of capital resources to increase firms value to the shareholders
financial resources
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legal consolidation of two comoanies into one entity
merger
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occurs when one company takes over another and completely establishes istself as the new owner
acquisition
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it consumed finacial slack include cash or unused debt capacity
Cash on hand
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increase financial slack, may improve debt rating and reduce cost of debt, TRANSACTION COST include fees
issue of stock
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may improve debt rating and reduce cost of debt
share in treasury
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transaction by payment
cash
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payments in forms of acquiring company
stock
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form of public sectors perspective ,method of finacing the delivery of new or refurbished sector
balance sheet
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transaction cost in share treasury include
brokerage fee
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acquisition is when the target comoany still exist an an independent legal entity
acquirer