D076 study guide - Study guides, Class notes & Summaries

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? Standardization Assessment of future needs Performance evaluation Corrective action - Performance evaluation A company is developing a financial forecast for the next year. The company plans to implement a new factory that will increase production and resulting sales by 20%. S...

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? Standardization Assessment of future needs Performance evaluation Corrective action - Performance evaluation A company is developing a financial forecast for the next year. The company plans to implement a new factory that will increase production and resulting sales by 20%. S...

A company is trying to finance a project with a mortgage loan from a bank. The company's assessment of the project indicates that the company may experience several years of loss until the project becomes profitable. This means that the company might lose its ability to pay back the loan and the interest on the mortgage. What action might the bank take to protect its interest? - Set a strict covenant that the company cannot easily achieve. bondholders - are more interested in projects that...

Accounting Definition  The system of recording, reporting, and summarizing past financial information and transactions. Activity Ratios  A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm’s operational efficiency and profitability.  AR Turnover: An activity ratio found by credit sales divided by accounts receivable.  ACP: An activity ratio found by the number of days in a year (365) divided by AR turnover.  F...

A company is trying to finance a project with a mortgage loan from a bank. The company's assessment of the project indicates that the company may experience several years of loss until the project becomes profitable. This means that the company might lose its ability to pay back the loan and the interest on the mortgage. What action might the bank take to protect its interest? - Set a strict covenant that the company cannot easily achieve. bondholders - are more interested in projects that...

Accounting Definition  The system of recording, reporting, and summarizing past financial information and transactions. Activity Ratios  A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm’s operational efficiency and profitability.  AR Turnover: An activity ratio found by credit sales divided by accounts receivable.  ACP: An activity ratio found by the number of days in a year (365) divided by AR turnover.  F...

A company is trying to finance a project with a mortgage loan from a bank. The company's assessment of the project indicates that the company may experience several years of loss until the project becomes profitable. This means that the company might lose its ability to pay back the loan and the interest on the mortgage. What action might the bank take to protect its interest? - Set a strict covenant that the company cannot easily achieve. bondholders - are more interested in projects that...

what is the difference between finance and accounting - The easiest way to describe these differences is that finance is forward-looking, or focuses primarily on the future, while accounting is generally backward-looking and focuses on the past. There are three primary areas in the world of finance: - Business finance Investments Financial institutions This area involves deciding which assets to invest in to create wealth in the future. - Investment The process of valuing assets - ASSETS ...

what is the difference between finance and accounting - The easiest way to describe these differences is that finance is forward-looking, or focuses primarily on the future, while accounting is generally backward-looking and focuses on the past. There are three primary areas in the world of finance: - Business finance Investments Financial institutions This area involves deciding which assets to invest in to create wealth in the future. - Investment The process of valuing assets - ASSETS ...

Accounting Definition  The system of recording, reporting, and summarizing past financial information and transactions. Activity Ratios  A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm’s operational efficiency and profitability.  AR Turnover: An activity ratio found by credit sales divided by accounts receivable.  ACP: An activity ratio found by the number of days in a year (365) divided by AR turnover.  F...