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8 Cards in this Set
- Front
- Back
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Accrual
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a noncash value flow recorded in the financial statements
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Annuity
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annual amount in a constant stream of payoffs
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Continuing Value
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the value calculated at a forecast horizon that captures value added after the horizon
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Dividend Conundrum
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reters to the following puzzle: the value of a share is based on expected dividends but forecasting dividends (over finite horizons) does not yield the value of the share
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Historical cost accounting
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measures investments at their cash cost and adjusts the cost with accruals.
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Matching Principle
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the accounting principle that recognizes expenses when the revenue for which they are incurred is recognized
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Perpetuity
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a periodic payoff that continues without end
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Terminal Value
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what an investment is expected to be worth in the future when it terminates or when it may be liquidated
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