My Test

Front 1

Average product

Back 1

The average product of a factor of production. It equals total product devided by the quantity of factor

Front 2

Consumer Price Index (CPI)

Back 2

An index that measures the average of the prices paid by urban consumers for a fixed "basket" of the consumer goods and services

Front 3

Consumer surplus

Back 3

The value (or marginal benefit) of a good minus the price paid for it, summed over the quantity ought

Front 4

Cyclical unemployment

Back 4

The fluctuating unemplyment over the business cycle

Front 5

Elastic demand

Back 5

Demand with a price elasticity grater than 1; other things remaining the same, the persentage change in the quantity demanded exceeds the persentage change in price

Front 6

Elasticity

Back 6

A measure of sesetivity; the incremental change in one variable with respect to an incremental change in another variable

Front 7

8-K

Back 7

" Companies must file this form to disclose material events including significant asset acquisitions and disposals, changes in management or corporate governance, or matters related to its accountants, financial statements, or the markets on which its securities trade.

Front 8

Form 144

Back 8

"A company can issue securities to certain qualified buyers without registering the securities with the SEC, but must notify the SEC that it intends to do so.

Front 9

DEF-14A.

Back 9

"When a company prepares a proxy statement for its shareholders prior to the annual meeting or other shareholder vote, it also files the statement with the SEC as Form DEF-14A.

Front 10

General journal

Back 10

"Journal entries record every transaction, showing which accounts are changed by what amounts. A listing of all the journal entries in order by date is called the “general journal.”

Front 11

MD&A

Back 11

"The MD&A provides an assessment of the financial performance and condition of the company from the perspective of the company and is required by the SEC. It includes many areas including such items as discontinued operations, extraordinary items, and other unusual or infrequent events. The MD&A is typically not audited.

Front 12

DuPont equation: ROE

Back 12

ROE = [net profit margin]*[asset turnover]*[leverage ratio]

Front 13

receivables turnover

Back 13

ACTIVITIY RATIO
receivables turnover=[annual sales]/[average receivables]

Front 14

ROE

Back 14

ROE=[net income]/[total equty]

Front 15

inventiry turnover

Back 15

"ACTIVITIY RATIO
inventory turnover=[COGS]/[avg inventory]"

Front 16

deffered tax liability

Back 16

the deferred tax liability (DTL) is cumulative so, it includes the balance from prior years

Front 17

Tax expense

Back 17

Tax expense = current tax rate × taxable income + deferred tax liability

Front 18

bond issue. CFO influence

Back 18

any bond issued at a discount will have more cash flow from operations and less cash flow from financing.

Front 19

total asset turnover

Back 19

"ACTIVITIY RATIO
total asset turnover=[revenue]/[total asset]"

Front 20

how changes in extraordinary items treated under GAAP and IFRS

Back 20

"Under U.S. GAAP, extraordinary items are reported net of tax below income from continuing operations. IFRS does not permit firms to treat transactions as extraordinary in the income statement.

Front 21

how changes in accounting principles treated under GAAP and IFRS

Back 21

Under both standards, a change in accounting principle is made retrospectively

Front 22

Diluted EPS

Back 22

Diluted EPS =
[(Net income − Preferred dividends)
+ Convertible preferred dividends
+ (Convertible debt interest)(1 − t)]
/ [(Weighted average shares) + (Shares from conversion of conv. pfd shares) + (Shares from conversion of conv. debt) + (Shares issuable from stock options)]

Front 23

FCFE

Back 23

FCFE=CFO-[net fixed CAPEX]+[net borrowings]

Front 24

payables turnover

Back 24

"ACTIVITIY RATIO
payables turnover=[purchases]/[average trade payables]"

Front 25

WC turnover

Back 25

"ACTIVITIY RATIO
WC turnover=[revenue]/[average WC]"

Front 26

current ratio

Back 26

"LIQUIDITY RATIO
current ratio=[current assets]/[current liabilities]"

Front 27

quick ratio

Back 27

"LIQUIDITY RATIO
quick ratio=[cash+marketable securities +receivables]/[current liabilities]"

Front 28

cash ratio

Back 28

"LIQUIDITY RATIO
cash ratio=[cash+marketable securities]/[current liabilities]"

Front 29

defensive interval

Back 29

"LIQUIDITY RATIO
defensive interval=[cash+marketable securities +receivables]/[average daily expenditure]"

Front 30

cash conversion cycle

Back 30

"LIQUIDITY RATIO
cash conversion cycle=[days sales outstanding]+[days of inventory in heand] -[# of days of payables]"

Front 31

debt-to equity

Back 31

"SOLVENCY RATIO
debt-to-equity=[total debt]/[total s/h equity]"

Front 32

debt-to-capital

Back 32

"SOLVENCY RATIO
debt-to-capital=[total debt]/[total debt+total s/h equity]"

Front 33

debt-to-assets

Back 33

"SOLVENCY RATIO
debt-to-assets=[total debt]/[total assets]"

Front 34

financial leverage

Back 34

"SOLVENCY RATIO
financial leverage=[avg total assets]/[avg total equty]"

Front 35

interest coverage

Back 35

"SOLVENCY RATIO
interest coverage=[EBIT]/[interest payments]"

Front 36

fixed charge coverage

Back 36

"SOLVENCY RATIO
[EBIT+ lease payments]/[interest payments+lease payments]"

Front 37

Total income tax expenses

Back 37

income tax expenses=[taxes payable]+deltaDTL-deltaDTA

Front 38

"debt liabilities
interest expenses"

Back 38

interest expenses=[the market rate as issue]*[the balance sheet value of the liability at the beginning of the period]