What are the three categories of cash flows in the Statement of Cash Flows?
Operating, Investing, Financing
100
How do we define 'Current' in the classification of Current Liabilities?
Paid in cash/settled within one year or the operating cycle
100
What organization oversees the development of auditing standards and monitors the effectiveness of auditors for publicly held (SEC) companies?
PCAOB - Public Company Accounting Oversight Board
100
What do we call the first issue of stock to the public?
(3 words)
Initial PublicOffering (IPO)
200
Name 3 inventory costing methods.
FIFO, LIFO, Average Cost, LCM
200
What do we call a contractual requirement put into loan
or bond agreements by lenders?
Covenants
200
Name one of the two primary qualities of accounting information.
Relevance and Reliability
200
What is an agreement with a bank that allows a firm access to borrowed funds upon demand over some specified period?
Line of Credit
300
Name 2 popular credit rating agencies
Moody's, S & P, Fitch, A.M. Best, Egan-Jones
300
What ratio is calculated by dividing Current Assets
by Current Liabilities?
Current Ratio
300
What popular investor is nicknamed the "Sage of Omaha?"
Hint: President and CEO of Berkshire Hathaway
Warren Buffett
300
What describes the decision by board of directors of a corporation as to how much of its quarterly earnings should be retained and how much should be distributed to
stockholders?
Dividend Policy
400
Name 2 of 4 criteria for capital leases
–Transfer of title by the end of the lease
–Bargain purchase option
–Life of lease is 75% or more of the economic life of the leased asset
–The present value of the minimum lease payments is 90% or more of the FMV of the leased asset
400
This popular theory suggests that capital markets are said to be efficient if at any given time; current stock
prices reflect all relevant information that reflects those prices.
Hint: 3 forms: strong, semi-strong, and weak
Efficient markets hypothesis
400
What congressional legislation created the Securities and Exchange Commission (SEC)?
The Securities Exchange Act of 1934
400
For a long-term project, WHAT is equal to the present value of expected periodic cash flows resulting from the project minus the initial outlay to purchase the project?
Net Present Value
500
What are two items included in the Statement of Stockholders' Equity?
Common Stock
Preferred Stock
APIC
Treasury Stock
Retained Earnings
500
Gains and losses that are both unusual and infrequent are segregated from income from continuing operations into what category?
Extraordinary Items
500
In terms of financial statement classifications, what is liquidity?
The ease of converting noncash assets into cash.
500
What are the two sources of company financing?
Investments from shareholders
Borrowing from creditors