Vocabulary
Expensing vs. Capitalizing
Cashflow
Manipulating the stock market
How Companies use debt
100

What is Volatility?

What are the ups and downs of income?

100

What is Capitalizing?

What is recording an expense as an asset?

100

What is the main source of cash a business has for a startup?

What is Capital?

100

True or false: Is manipulating the stock market always illegal?

What is False?

100

By taking on debt businesses do what?

Will take on a lump of cash and have to pay back the amount with interest.

200

The balance between a company's capital and funding

What is the Gearing Ratio?

200

What is expensing?

Recording an expense as it happens and reducing profit for that.

200

What is cash flow?

Cash Flow is the movement of cash in and out of a business over a set period of time.

200

When a company posts news about their financial status it can do what?

What is raise or increase prices?

200

By Issuing shares a company is doing what?

Selling equity or Stake in the business.

300

A practice designed to reduce variance in income

What is Smoothing Earnings?

300

When do companies start to expense?

When they want to reduce taxes since lower profits is lower taxes.

300

What is the percentage of small businesses that fail due to bad poor cash flow management?

What is 80 percent?

300

How can an investor drive down stock prices without having a large portion in the company?

What is Short Selling?

300

Dividends are? 

Money a company will pay to its shareholders.

400

What are Bonds?

What are securities for long term debt?

400

When do you start to capitalize?

When you look to keep costs down to report a higher income.

400

The survival of a business depends on how it handles its cash flow. True or False?

What is True?

400

An investor can use what to drive down prices? (Not the answer to 300)

What are Large Volumes?

400

Creditors are?

People who owe a firm or business money

500

What is how much an asset devalues over time?

What is Deprecation?

500

 What is the same between Expensing vs Capitalizing

They're both used to convey statistics for a benefit.

500

What is Positive Cash Flow, Stable Cash Flow, Negative Cash Flow, and Bankruptcy?

Positive Cash Flow is more cash flowing into a business than cash flowing out.  Stable Cash Flow the same amount of cash flows out of a business as its flowing in.  Negative Cash Flow more cash is flowing out of a business that in.  Bankruptcy If cash continues to flow out more than cash flowing into the business the business will have no more cash to pay for its expenses.

500

What is one scandal that came from traders?

What is the Libor Rigging Scandal?

500

A company that raises via issuing shares may have to do what?

Allow larger shareholders to have a say in how the business is run.

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