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12 Cards in this Set
- Front
- Back
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Balance sheet
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Financial statement showing a firm's accounting value on a particular date.
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Net working capital
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Current assets less current liabilities.
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Generally Accepted Accounting Principles (GAAP)
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The common set of standards and procedures by which audited financial statements are prepared.
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Income statement
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Financial statement summarizing a firm's performance over a period of time.
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Noncash items
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Expenses charged against revenues that do not directly affect cash flow, such as depreciation.
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Average tax rate
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Total taxes paid divided by total taxable income.
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Marginal tax rate
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Amount of tax payable on the next dollar earned.
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Cash flow from assets
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The total of cash flow to creditors and cash flow to stockholders, consisting of the following: operating cash flow, capital spending, and change in net working capital.
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Operating cash flow
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Cash generated from a firm's normal business activities.
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Free cash flow
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Another name for cash flow from assets.
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Cash flow to creditors
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A fir's interest payments to creditors less net new borrowings.
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Cash flow to stockholders
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Dividends paid out by a firm less net new equity raised.
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