Capital and Finance
Name the five main sources of capital for performing capital appreciation
Bank loans and borrowings, bond loans, preferred shares, ordinary shares, and retained earnings
What are the three main groups of sources for financing working capital?
Own, borrowed, and attracted
What do we call the balance point where all of the company's expenses are exactly the same as the total revenue?
The break-even point
What is the amount of money credited to an organization's checking account for products sold, goods performed, and services rendered called?
Revenue from the sale of goods, works, and services
What are short-term, highly liquid investments that are easily convertible to cash and have an insignificant risk of value change?
Cash equivalents
What security confirms the deposit of funds and the obligation to reimburse its nominal value and established interest?
A bond
What is the term for the duration of one complete turnover of funds from the moment of conversion of working capital in cash into production stocks until the release of finished products and their sale?
The turnover of working capital
What is the formula for Break Even Units?
Fixed Costs divided by (Selling Price per unit - Variable Cost per unit)
Which indicator is formally presented as the difference between operating profit and fixed financial expenses?
Taxable Income
To which section of the cash flow statement does the recurring purchase of fixed assets (Capex) belong?
Cash Flow from Investing Activities (CFI)
What are the three main components of the financial leverage formula?
The tax corrector of financial leverage, the differential of financial leverage, and the financial leverage ratio
What is the formula for determining the standard of working capital in production stocks?
Average daily consumption (C) multiplied by the stock rate in days (R)
What is the main difference between fixed and variable costs?
Fixed costs remain the same no matter how much a company produces, while variable costs change based on how much a company produces and sells.
What profit indicator is of greatest interest to lenders because it covers fixed financial expenses?
Earnings before interest and taxes (EBIT) / Operating profit.
What is the formula for calculating Net Cash Flow (NCF) based on the three types of activities?
Cash Flow from Operations (CFO) + Cash Flow from Investing (CFI) + Cash Flow from Financing (CFF)
What dividend policy approach involves the stable payment of a guaranteed minimum and "extra dividends" in case of successful business?
A moderate approach
What are the three basic methods used for working capital rationing?
Direct accounting (direct counting), analytical, and coefficient methods
What is the formula for calculating the break-even point expressed in days?
(Break-even Threshold / Turnover) × 365 days
What is the amount of profit remaining after a company has paid all costs, income taxes, and dividends called?
Retained earnings
What are the two main types of budgets used in the practice of a company's financial management?
Current (operational) and capital budgets
How is the interest rate (i) determined in relation to the interest amount and the initial amount?
By dividing the interest (I) by the initial amount (P)
Name the five types of stocks used to set the reserve rate in days for production stocks.
Current, insurance, preparatory, technological, and transport.
What integration method combines accounting, planning, and control into a single information system to make decisions ensuring maximum benefit?
Controlling
How do you calculate basic earnings per share?
It is the firm's net profit available for distribution to holders of ordinary shares divided by the actual weighted average number of these shares outstanding during the reporting period
What are the three components of budgeting as a management technology?
Budgeting technology, organization of the budgeting process, and the use of information technologies