Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Average Collection Period (ACP) - An activity ratio found by the number of days in a year (365) divided by AR turnover. Current Ratio - A liquidity ratio found by current assets divi...
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Beta A variable that describes how the price of a security varies with the market. Business Finance An area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to its owners, and the tools and anal...
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Add to cartBeta A variable that describes how the price of a security varies with the market. Business Finance An area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to its owners, and the tools and anal...
A bond becomes "premium" or "discount" once it - begins trading on the secondary market. A company called Bobby's Books is considering purchasing a new bookbinding machine. The company calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase the b...
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Add to cartA bond becomes "premium" or "discount" once it - begins trading on the secondary market. A company called Bobby's Books is considering purchasing a new bookbinding machine. The company calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase the b...
Net Present Value (NPV) - the sum (or net) of the present values of all of the project's expected cash inflows and outflows. Advantages of NPV - Considers time value of money Calculates value added to the firm Considers risk and required return Disadvantages of NPV - Requires calculation of ap...
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Add to cartNet Present Value (NPV) - the sum (or net) of the present values of all of the project's expected cash inflows and outflows. Advantages of NPV - Considers time value of money Calculates value added to the firm Considers risk and required return Disadvantages of NPV - Requires calculation of ap...
What is the name for a forecast of short-term events that helps a company understand if it has sufficient cash? - Cash budget What is the purpose of a monthly cash budget? - To control cash inflows and outflows so you can balance income with expenditures and savings In which situation would a fi...
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Add to cartWhat is the name for a forecast of short-term events that helps a company understand if it has sufficient cash? - Cash budget What is the purpose of a monthly cash budget? - To control cash inflows and outflows so you can balance income with expenditures and savings In which situation would a fi...
Cash Budgets - Profit Forecasting - Balance Sheet Forecasting - Discretionary Financing Needed - The additional financing needed given a firm's expectations for future growth. Spontaneous Accounts - Accounts that vary naturally with sales. Discretionary Accounts - Accounts that do not vary...
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Add to cartCash Budgets - Profit Forecasting - Balance Sheet Forecasting - Discretionary Financing Needed - The additional financing needed given a firm's expectations for future growth. Spontaneous Accounts - Accounts that vary naturally with sales. Discretionary Accounts - Accounts that do not vary...
Company ABC would like to continue to grow, but in order to maintain control of all decisions and ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership the fastest that ABC can grow? - Sustainable growth rate How can you use the envelope method of b...
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Add to cartCompany ABC would like to continue to grow, but in order to maintain control of all decisions and ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership the fastest that ABC can grow? - Sustainable growth rate How can you use the envelope method of b...
A company calculated variances of a budget and actual cash flows that indicate the firm's strengths and weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an example of? -Corrective action -Standardization -Assessment of future needs -Performance eva...
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Add to cartA company calculated variances of a budget and actual cash flows that indicate the firm's strengths and weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an example of? -Corrective action -Standardization -Assessment of future needs -Performance eva...
Accounting The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) An activity ratio found by credit sales divided by accounts receivable. Activity Ratios A category of ratios that measure how well a company use...
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Add to cartAccounting The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) An activity ratio found by credit sales divided by accounts receivable. Activity Ratios A category of ratios that measure how well a company use...
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