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18 Cards in this Set
- Front
- Back
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what is an asset that can quickly be converted into cash with little risk of loss
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liquid asset
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what is liquidity ratios
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financial ratios that measures the ability of a firm to obtain to cash
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what is financial leverage?
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the use of debt in a firm's capital structure
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what kind of ratios provide measures of how successful they are at achieving this goal
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profitability ratios
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what are basic planning tool
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budgeted income statement
budgeted balance sheet |
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what is net working capital
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the difference between a firm's current assets and current liabilities
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what is NPV
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net present value
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what is retained earnings
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that part of income that a firm reinvests
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what is covernants
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conditions lenders place on firms
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What is the difference between a gross sale and a net sale?
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gross sales is what is accounted for as sales and net sales is what is received on account of the transaction.
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What does the legal term 'natural person' mean in corporation law?
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Natural person refers to a human being as opposed to a legally created entity
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Why is management theory important?
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Management theory is important because it is the study of how to make all the people in your organization more productive.
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what is an example of developing more sophisticated way to allocate costs
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activity-based costing
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how many tyoes of budget in accounting and what are they?
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1.operating budgets
2.financial budgets 3.master budget |
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Does the income statement explain the change in the equity section of a balance sheet?
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The income statement could explain the change in the equity section of a balance sheet. However, there are likely to be some other explanations as well.
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What are term bonds and serial bonds?
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Term bonds are bonds which mature or come due on a single date.
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Where in the chart of accounts is a suspense account located?
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A suspense account could be located in any part of an organization’s chart of accounts
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What is the difference between public companies and public sector?
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Public companies are those businesses owned by individuals (and not by a government).
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