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;
18 Cards in this Set
- Front
- Back
Balance Sheet |
Assets: current/longterm Liabilities: current/longterm Equity: |
|
Under CFO |
treasurer (finance) controller(accounting) |
|
Three types of businesses |
(1) sole proprietorship (2) partnership (3) corporation |
|
Pros/Cons: Sole Proprietorship |
(1) cheap/easy to set up (2) fast (3) no double taxation Cons: (1) personal liability (2) not easily transferable (3) hard to get financing |
|
Partnership |
(1) cheap/easy (2) group together (3) partnership agreement to allocate liabilities/profits (4) no double taxation Cons: (1) same as sole proprietorship |
|
Corporation |
(1) costly/timeconsuming (2) detailed outline (3) easier to get financing (4) limited libaility (5) ownership easily transferable (6) incorporate in one state (7) stricter on finance reporting(8) doubel taxation |
|
sarbox oaxly |
no lending to officers CFO sign of on statements internal controls only applies to sotck exchange participants |
|
Assets |
Fixed: last a long time, longer than a year Current: within a year intangible:patents, liscense, copy rights, brand name tangible: physically present |
|
Net working capital |
current assets-current liabilities designed to comment on the short term cash flow levels |
|
capital budgeting |
the process of maing and managing expenditures on long-lived assets |
|
capital structure |
represents the protions of the firms financiing from current and long term debt equity |
|
To raise money: |
firms sell equity to investors or debt in financial markets = cash flow to invest in firm, generate revenue, pay back debt/distribute money to investors |
|
two ways to make profit: |
margin, quantity |
|
Goals: |
maximize the value of owners equity |
|
agency costs: |
ost of conflicts of interest between stockholders and management |
|
management economic incentives |
managemet compensation usually tied to financial performance job prospects |
|
stakehodlers |
people interested in the well being of the firm |
|
cash flow versus profit |
accruals/deferrals and depreciation/amoritization creat different income and cash flow levels |