The four basic areas that financial topics are grouped into.
What is Corporate Finance, Investments, Financial Institutions and International Finance
100
The interest earned on the reinvestment of previous interest payments
What is interest on interest
100
Shows Assets, Liabilities, and Equity
What is a Balance Sheet
200
An asset that is planned to be used within a year.
What is a "current" asset
200
Cost of Goods Sold over Inventory
What is Inventory Turnover
200
This individual is usually the top officer of the firm, sometimes called the Chief Financial Officer (CEO) or something else.
What is the Financial Manager
200
interest earned on both the initial principal and the interest reinvested from prior periods.
What is compound interest
200
The Financial Statement that shows Revenue and Expenses
What is the Income Statement
300
Calculation for Return on Assets and what it tells us about the relationship with assets to profit.
What is net income divided by total assets. It tells us how much profit a company generated from its assets.
300
Total debt to Total equity
What is Total Debt Ratio
300
The three main forms of business organization
What is Sole Proprietor, Partnership and Corporation.
300
the rate used to calculate the present value of future cash flows.
What is discount rate
300
Expenses charged against revenues that do not directly affect cash flow.
What is Depreciation
400
These 3 components of cash flow from assets result from the firms day to day activities.
What is Operating Cash Flow, Capital Spending, and Change in Net Working Capital
400
Net Income after tax interest expense divided by total assets
What is Return on Assets
400
Goal of Financial Management
What is maximize the current value per share of the existing stock.
400
Valuation calculating the present value of a future cash flow to determine the value today
What is discounted cash flow (DCF) valuation.
400
The largest cash outflow that a firm experiences
What is Taxes
500
This is the equation to calculate cash flow to stockholders.
What is Dividends paid minus net new equity raised.
500
Short term creditors are interested in this ratio
What is Cash ratio
500
These financial markets function as markets for debt and equity.
What is Primary and Secondary Markets.
500
The current value of future cash flows discounted at the appropriate discount rate
What is Present Value
500
A tool for Financial Statement Analysis, this compares items line by line as a % of the total. Used to compare year to year financials and across industry financials.