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197 Cards in this Set
- Front
- Back
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9-K
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A current report filed with the SEC during a fiscal year that presents a change of some significance
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10 Form
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The Registration Statement submitted by companies that do not have securities registered with the SEC but: have more than $10M in total assets and 500 or more shareholders for a class of securities or have securities listed on an exchange or on the NASDAQ
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10-K
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The annual report that a publicly-traded company files with the SEC
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10-Q
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The quarterly report that a publicly-traded company files with the SEC
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AICPA
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The American Institute of Certified Public Accountants
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Accounts Payable
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The amount owed to suppliers for goods and services provided
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Accounts Receivable
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The claim arising from the sale of goods or services and transaction in the ordinary course of business to be collected within one year from the balance sheet date
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Accumulated Depreciation
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The value of fixed or capital assets over a period of time, (see definition of depreciation)
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Accredited Investors
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The persons or entities who have met minimum income &/or net work requirements for buying private company securities
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Balance Sheet
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A financial statement that shows the company's financial position at a given point in time
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Basic EPS (Earnings Per Share)
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The earnings that are based on shares actually owned by shareholders
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Beneficial Ownership Report
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The report filed by shareholders and directors, and officers of a private company that outlines the shareholders' profile, their investment intentions. changes in ownership of securities, and any transactions involving the company's securities, (Consists of SEC Forms 3, 4, and 5)
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Book Value
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When used to refer to an asset: The value of an asset as recorded in the balance sheet. When used to refer to company valuation: The company's value as recorded in the financial statements that refers to total stockholders' equity or total assets minus total liabilities
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Break-Even
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An indication of operating performance resulting in no gain and no loss
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Bridge Loan
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A short-term loan secured until a long-term loan is processed
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COGS
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The cost of goods sold
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CPA
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A certified public accountant
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Capital Expense/Expenditure
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The company's expenses that are considered assets because they have lasting value to the company. Examples include office building, property, or major physical repairs
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Cash or Cash Equivalents
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Any item on hand that has monetary value and all amounts that are currently on deposit with a bank in the company's name
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Cash Equivalents
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Any investments that can be easily converted into cash
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Cash Dividends
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Money that is distributed to shareholders as the return on their investment
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Cash Flow Statement
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A report that contains how much cash the company either generated or consumed over a certain time period
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Certificate of Stock
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A document that contains evidence of the investor's ownership interest in a company
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Commercial Paper
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A money-market security issued to meet short-term debt obligations
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Common Stocks/Shares
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The ownership in a company that is based on a simple division into equal parts and that does not have the privileges that preferred stock may have
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Compilation
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See Auditor's Compilation
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Comprehensive Income
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An overall measure of the company's earnings that is derived by integrating into net Income any changes in economic and market conditions that are not related to business operations
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Conservatism
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An accounting principle that requires a high degree of verification of profits versus losses
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Continuing Operations
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The business activities or operations that are ongoing
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Corporate Description
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An overview of the business and its mission
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Cost of Goods Sold (COGS)
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See Cost of Sales
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Cost of Revenue"
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See Cost of Sales
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Cost of Sales
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The cost of products or services sold during a specified time period. Also called cost of revenue or cost of goods sold
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Coupon Payments
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The interest on bonds
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Credit Rating
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See Financial Rating
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Creditors
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The agencies that extend loans and credits
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Cumulative Effect of a Change in Accounting Principles
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The account in an income statement that represents the costs resulting from a change in an accounting principle in reporting financial information
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Current Assets
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The cash or near cash resources that the company can use to pay obligations as they become due
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Current Liabilities
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The obligations that are expected to be settled within twelve months from the balance sheet date
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Current Ratio
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Current assets / current liabilities
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Debt Financing
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The financing that is in the form of debt and that creditors provide
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Debt to Equity Ratio
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A measure of how much of the company's assets are financed by debt and equity and that includes total debt to equity ratio and long-term debt to equity ratio
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Depreciation
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The reduction in value of assets as they age over time
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Diluted EPS (Earnings Per Share)
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The earnings that are based on the total number of shares that could be outstanding if holders of securities, which are convertible to stock, do in fact convert the securities into stock
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Disclaimer
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A statement that indicates auditor is unable to express an opinion and/or the auditor does not accept any significant responsibility for the reported information
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Discontinued Operations
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A disposition of major business segments through sale or closure
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Dividends
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See Cash Dividends
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Doubtful Accounts
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An estimated amount of accounts receivable that may not be collected
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Earnings Growth
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(Latter year EPS - Earlier year EPS) + Earlier year EPS) X 100
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Earnings Per Share (EPS)
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The income that is generated for each of a company's outstanding shares
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EBIT
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The earnings before interest and taxes
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EBITDA
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The earnings before interest, taxes, depreciation, and amortization
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EDGAR Database
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The database of financial reports filed with the SEC ) by public companies and other reporting companies
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Effectiveness/Efficiency
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The measures that indicate of how well a company's resources are being used and managed
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Enterprise Value EV
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(Market cap + total debts + preferred shares) - cash and cash equivalents
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EPS
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The earnings per share or the income that is generated for each of a company's outstanding shares
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Equity
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The capital that is contributed by the owners/shareholders and that is earned through past business operations, The shareholders' interest in the company's assets after deducting all liabilities, Assets - liabilities, Net cumulative paid-in capital - net cumulative retained earnings
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Equity Financing
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The cash that came to the company from the sale of securities to people who are now the company's shareholders
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Exhibit 99
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A full-press release describing the change that is covered by the Farm 8-K
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Expense(s)
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The costs that are incurred in realizing revenues
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Expense Recognition Principle
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The principle that states that expenses are recognized in the period when they actually contributed to revenue
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FASB
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Financial Accounting Standards Board
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Financial Accounting Standards Board
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The authoritative body that sets accounting standards and provides guidelines for implementation
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Financial Analysis
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The interpretation of financial data into useful information that can facilitate decision-making
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Financial Covenants
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The promises that are made by debtors to creditors and that are designed to protect the creditors' interests
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Financial Rating
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The rating of a company's creditworthiness by independent financial rating and research organizations
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Financial Statement
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A report that contains information about the company's financial performance
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Financial Strength/Solvency
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An indication of the company's ability to pay its short and long-term obligations and accomplish future expansion and growth
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Financing Activities
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The transactions in which cash is obtained from creditors or paid to shareholders
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Fixed Assets
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The tangible assets that are acquired for use in operations and that are not intended for sale or to be converted into cash during the ordinary course of business. Also called property, plant, and equipment
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Fixed Time Period Assumption
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The specific time periods in which financial statements can be prepared, such as monthly, quarterly, or annually
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Forward P/E Ratio
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The price to earnings ratio based on 12-month projected earnings per share
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Full Disclosure Principle
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All information that is relevant to those interested in the company's financial condition and that must be disclosed in the company's financial statements
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GAAP
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General Accepted Accounting Principles
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General Accepted Accounting Principles
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The set of rules and standards used in preparing and report financial statements
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Going concern assumption
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An assumption that the business will be financially viable and operational for a long time into the future
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Goodwill
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An intangible asset that refers to strong business reputation and relationships of a company
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Gross Margin
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[(Revenue -cost of revenue)/revenue) X 100]
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Historical Cost Principle
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The principle that states that all items are purchased at a specific cost and recorded in the financial statements according to their original cost
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Illiquid
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The characteristic of assets or securities not being readily convertible to cash
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Income
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Revenues earned -expenses incurred. A specific account in an income statement that reflects an amount not yet final with other expenses or deductions to be subtracted from it
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Income Statement
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A financial statement that reports the company's economic performance for a certain time period
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Industry practices
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The practices of the industry within which a given company operates that may be applied if no specific GAAP concept applies as long as these practices can be reconciled with GAAP
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Initial Public Offering IPO
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The first time a private company offers its securities for sale to the public
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Insolvency
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The inability to fulfill financial obligations
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Intangible Assets
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The assets of a company that have no physical substance or existence, like goodwill or company brand name
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Interest Coverage Ratio
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Interest expense / revenue
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Internal Control Weakness
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An identified weakness of the process followed and/or the procedures imposed in a company's financial reporting and compliance with rules and standards
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Inventory
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The goods available for sale in the ordinary course of business
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Inventory Turnover
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Revenue / inventories
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Investing Activities
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The purchase of long-term assets and securities as investments
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Investors
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The persons who invest money in a company by buying shares of stocks
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Large Cap
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A description of a company with over $5B market capitalization
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Liabilities
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A company's present obligations arising from past events, the settlement of which is to pay in cash or other transfer of assets in the future
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Liquid Assets
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The current assets that can be easily converted into cash, such as bank deposits, Accounts Receivable, short-term investments, and loans, etc.
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Liquidation
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The process of selling all assets to pay creditors and preferred shareholders, with any remainder divided among all common shareholders
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Liquidity
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The sufficiency of a company's liquid assets to satisfy a company's financial obligations
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Long-Term Assets
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The assets that are not expected to be realized, sold, and/or consumed within twelve months from the balance sheet date
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Long-Term Debt to Equity Ratio
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Long-term liabilities / total shareholders' equity
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Long-Term Investments
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The investment that companies make of their excess funds for purposes of additional revenue and capitalization
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Long-Term Liabilities
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The obligations not expected to be paid using current funds
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Loss
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The situation that occurs when expenses incurred are greater than revenues earned
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MD&A
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Management's Discussion and Analysis
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Management's Discussion and Analysis
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The explanation and evaluation of the company's financial position that management provided as well as the company's future business plans
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Market Cap
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Market capitalization
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Market Capitalization
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The total market value of the company's outstanding shares
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Market Value Per Share
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The value or price of a stock according to market expectations
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Marketable Security
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A security that can be converted to cash easily
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Matching Principle
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The principle that states that expenses incurred must be matched with the corresponding revenue earned
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Materiality Constraint
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A reason to avoid GAAP that can be applied when no material effect on the interpretation of financial data would occur
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Merger-Related Costs
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The costs that are incurred in connection with merger activities
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Micro Cap
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A description of a company with less than $150M market capitalization
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Mid Cap
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A description of a company with $500M to less than $5B market capitalization
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Money
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The paper and coin currencies used in day-to-day financial transactions
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Net Cash
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The total amount of actual cash or cash equivalents for the reporting period
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Net Income
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The return that a company recognizes from operations or the amount of income that a company has after all expenses are deducted from revenues
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Net Loss
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The loss that a company recognizes from operations
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Net Profit
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See Net Income
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Net Worth
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A company's total shareholders' equity
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Net Ownership
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A company's total shareholders' equity
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Non-Operating Assets
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The sum of goodwill and intangible assets
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Non-Trading Securities
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The securities that were acquired to generate profit not from short-term fluctuations in value
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Normal (Valuation)
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The market value of a company is considered normal The ratio of current stock price to other financial factors that is 1:1 or at par with the industry average ratio
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Notes to Financial Statements
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An integral part of the financial statements contained in an annual report that specify supplemental information about the financial statements to clarify certain facts and figures
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Off-Balance Sheet Liabilities
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The liabilities not reported in the balance sheet
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Operating Activities
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The transactions involving actual business operations
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Operating Asset Turnover
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Revenue / operating assets
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Operating Asset(s)
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Total assets - non-operating assets
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Operating Expenses
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The expenses that are incurred in the course of producing and selling goods, rendering services, and carrying out other activities that constitute the company's ordinary operations
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Operating Margin
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Operating income / revenue x100
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Outstanding Shares
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The Shares of stock that have been issued to the public
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PCAOB
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Public Company Accounting Oversight Board
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Paid-In Capital
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The amount of resources that companies receive from shareholders when they buy shares of stock from the company, as opposed to buying shares on the open market where stock is traded after the company initially sells it
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Par Value
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An arbitrary value of a stock indicated in the company's charter
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Pension and Post- Retirement Benefit Obligations
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The employer's share in the employees' pension and retirement savings benefit
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Preferred Stocks/Shares
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A class of security that generally confers preferential rights to shareholders
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Prepaid Expenses
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The advance payments of items that the company will use in the coming accounting period
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Price to Book Value Ratio
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P/B Ratio = Market value per share / book value per share
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Price to Cash Flow Ratio
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P/C Ratio = Market value per share / cash flow per share
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Price to Earnings Ratio
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P/E Ratio = Market value per share / earnings per share
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Price/Earnings to Growth Ratio
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PEG Ratio = P/E Ratio / Annual EPS growth
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Price to Sales Ratio
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P/S Ratio = Market value per share / revenue per share
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Private Company
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A company that is privately owned and that does not offer securities to the public
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Pro-Forma Financial Statements
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The hypothetical reports that reflect estimated figures based on certain events and conditions
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Profit
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The result of revenue earned being greater than expense incurred
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Profit and Loss Statement
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Another term for income statements
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Profit Margin
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Net income / revenue X 100
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Profitability
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A measure of the amount of money that a company has earned over a certain time period
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Prospectus or Preliminary Prospectus
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A marketing document that is prepared for a company processing an IPO and that contains the details of the company's business, properties, financial data, capitalization, management, and other material information required to be disclosed for consideration by potential investors. Also called red herring
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Public Accounting Firm
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A group of independent accountants engaged in the practice of public accounting and in the preparation and issuance of audit reports
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Public Company
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A company that offers securities (stock) for public ownership
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Public Company Accounting Oversight Board (PCAOB)
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A private sector organization that oversees the public accounting firm
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Qualified Opinion
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An auditor's opinion that indicates the willingness to assume maximum responsibility for the reliability of the statements, except for the items explained in the qualification
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Quick Ratio
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(Current assets -inventories) / current liabilities
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Receivable Turnover
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Revenue / accounts receivable
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Red herring
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See Prospectus
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Registration Statement
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The Form S-1 for IPOs and Form 10 for private companies and start-ups that is required by the SEC under certain circumstances
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Report of Independent Registered Public Accounting Firm
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A report that contains the examination of a company's financial statements by an independent auditor
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Research and Development Expenses
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The expenses that pertain to the company's research efforts that are required to improve existing products and develop new ones
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Retained Earnings
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The amount of income in the previous years that was not paid in the form of dividends to shareholders but that the company retained for itself
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Return on Assets (ROA)
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Net income / total assets
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Return on Equity (ROE)
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Net income / total shareholders' equity
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Return on Investment (ROI)
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Return on Assets (ROA), Net income / total assets
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Revenue
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The revenues that arises from the company's primary business activities during a specific time period that may come from sales of products, rendering of services, and other revenue-generating activities
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Revenue Growth
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[(Latter year revenue - earlier year revenue) / earlier year revenue] X 100
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Revenue Recognition Principle
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Revenue must be recognized in the period in which it was earned
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Review
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See Auditor's Review
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S-1 Form
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The registration statement filed with the SEC to register initial public offerings (IPOs)
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SEC
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Securities and Exchange Commission
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Securities
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The shares of stock that a company offers to investors
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Securities and Exchange Commission
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The legal authority of the U.S. government that establishes reporting and accounting standards for companies desiring to offer shares to the public
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Selling, Information and Administrative Expenses
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The expenses that cover the company's activities in selling its products or services and administering its operations
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Separate Entity Assumption
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The assumption that provides that the company's finances are kept separate and distinct from lhe personal affairs of its owner(s) or from any other business or organization
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Shareholders
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The owners of shares in a company
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Short-Term Investments
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The securities that are expected to be realized within 12 months from the balance sheet date
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Short-Term Loan/Borrowings
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A loan to be paid in not more than twelve months
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Short-Term Solvency
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The ability to pay current liabilities using current assets
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Small Cap
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A description of a company with $150M to less than $500M market capitalization
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Stable Monetary Unit Assumption
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The assumption that transactions in the financial statements are assumed to be recorded in units of money and stable currency
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Start-Up Company
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A company recently formed or organized
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Statement of Cash Flows
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See Cash Flow Statement
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Statement of Earnings
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Another term for income statement
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Statement of Operations
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Another term for income statement
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Statement of Shareholders' Equity/Stockholders' Equity/Owners' Equity
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A report that contains the changes in the amount of owners' equity at the beginning and the end of the reporting period
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Stockholders' Equity
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The interest of owners in the company's assets after deducting all liabilities, Also called owners' equity and shareholders' equity
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Stock options
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The rights to buy a certain number of shares within a time period
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Tangible assets
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The assets of the company that have physical substance or existence
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Total Debt to Equity Ratio
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Total liabilities / total shareholders' equity
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Traded at a Discount (Relative to market or industry benchmarks)
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The situation in which an investor enjoys the company's earnings at a price lower than its actual value
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Traded at a Premium (Relative to market or industry benchmarks)
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The situation in which an investor pays more, on average, for a company's earnings than is generally available in the market
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Trailing P/E Ratio
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P/E ratio based on 12-month historical earnings per share
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Treasury Stock
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The shares that a company has issued and then reacquired but did not cancel
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Unqualified Opinion
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An auditor's opinion that indicates the auditor accepts the maximum degree of responsibility for thoroughly auditing all the financial statements and finding them to be in good order
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Valuation
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A method that determines how much a business is worth
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Venture Capital/ist (VC)
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An investment organization that provides funding for high-potential, start-up companies and other companies
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Weighted Average Shares Basic
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The number of shares from which the basic earnings per share rate is calculated
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Weighted Average Shares Diluted
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The number of shares from which the diluted earnings per share rate is calculated
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