Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
|
What are the three sub-specialties of finance?
|
corporate finance-maximize shareholder wealth
investments-money managers institutions- banks, insurance and pension |
|
|
What are the 9 careers in finance?
|
Commercial bank
Corporate finance financial planning insurance investment banking money management real estate hedge funds private equity |
|
|
What are the four careers in investment banking?
|
private wealth management
security offerings mergers and acquisitions research analyst |
|
|
T/F do businesses use accrual based accounting?
|
False
|
|
|
What is revenue recognition?
|
You can either put your revenue on the books as a % of completion of a project OR
save revenue when completed |
|
|
3 parts of Statement of Cash Flows
|
Operations
Investing Financing |
|
|
3 types of benchmarks
|
Time series/trend analysis
cross-sectional (compare yourself to peers) Goal setting |
|
|
4 types of ratios
|
Liquidity
Efficiency Financing Profitability |
|
|
Which of the following streams of income is not affected by how a firm is financed (whether with debt or equity)?
|
Operating income – financing is assumed not to impact revenue or cost of goods sold and operating expenses. However, it will impact interest expense and taxes. Working capital is defined as CA-CL and is not a stream of income
|
|
|
Who owns the retained earnings of a public firm?
|
All equity accounts are owned by the shareholders – they are the owners of the firm.
|
|
|
What is a non-cash expense?
|
depreciation
|
|
|
corporate finance's synonyms
|
managerial finance
financial management business finance NOT INVESTMENTS |
|
|
What is a passive investing technique?
|
Dollar-cost-averaging
|
|
|
asset (money) manager for a hedge fund. Which certification will add the most value for you according to the text?
|
Chartered Financial Analyst (CFA)
|
|
|
Supply chains are also known as?
|
value chains
|
|
|
marketable securities are also known as?
|
cash equivalents
|
|
|
An increase in an operating asset account indicates a _____ of cash.
|
use
|
|
|
Financial leverage refers to the
|
amount of debt used in a firm’s capital structure
|
|
|
________refers to the net expenditures by the firm on fixed asset purchases.
|
Capital spending
|
|
|
refers to the net total cash flow of the firm available for distribution to its creditors and stockholders
|
Free cash flow to the firm
|
|
|
What is the intuition behind an optimal debt ratio?
|
it will minimize the cost of financing
|
|
|
Economic Value Added (EVA) measures economic profit instead of accounting profit by accounting for what?
|
Opportunity Costs
|
|
|
The financial ratio measured as net income divided by total assets is known as the firm’s:
|
return on assets
|
