Financial Statements
Introduction
General
Risk Analysis- Interest
Stock and Bonds
100
Shows assets, liabilities and equity.
What is the Balance Sheet?
100
The common set of standards and procedures by which audited financial statements are prepared is known as the
What is `Generally Accepted Accounting Principles (GAAP)
100
What is the interest rate that is expressed as if it were compounded once per year called?
Effective annual
100
Evaluating this type of risk would include analyzing a company's credit history, collateral, cash flows and capacity for debt.
What is Credit Risk?
100
The rate at which a stock`s price is expected to appreciate (or depreciate) is called the _______ yield
What is "Capital gains."
200
The financial statement that shows revenues and expenses.
What is the Income Statement?
200
Which Term relates to the cash flow which results from a firm`s ongoing, normal business activities
Operating Cash Flow
200
The relationship between nominal rates, real rates and inflation is known as the
Fisher Effect
200
leaving money in the financial market to accumulate interest or earning interest on your interest
Compound Interest
200
Calculated by adding the sum of coupons paid per year and dividing it by the bond's face value.
What is Coupon Rate?
300
The only financial statement that does not reflect accrual-based accounting.
What is the Statement of Cash Flows?
300
The lower the inventory turnover, the
longer it takes a firm to sell its inventory
300
Payments made by a corporation to its shareholders in the form of either cash or shares of stock are called
Dividends
300
the interest without consideration of compounding,
Annual Percentage Rate
300
It refers to the stock value stated in the corporate charter.
What is Face Value/Par Value?
400
the portion of a company's profit allocated to each outstanding share of common stock.
What is the Earning Per Share?
400
One of the source of cash is
Accounts payable
400
Interest rates that have not been adjusted for inflation are called
Nominal rate
400
a level stream of regular payments that lasts for a fixed number of periods
Annuity
400
the date on which the life of a transaction or financial instrument ends, after which it must either be renewed or it will cease to exist.
What is Maturity?
500
projected, or forecast, income statements and balance sheets.
Pro Forma Financial Statement
500
The values more relevant as they reflect today`s value of an item.
What is the Market values?
500
The rate of return required by investors in the market for owning a bond is called the
Yield to maturity
500
the amount a future sum of money is worth today, given a specific rate of return
Present Value
500
A bond trading above its par value
What is Premium Bond?
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