The Why
Financial Management
What is needed to start a business and keep it going?
Money!
A plan for obtaining and using money
Financial Plan
What is the document called that states a bank will pay the depositer guaranteed interest on money left for a period of time?
CD
What do you call the examination of a company's financial information?
Audit
If you want a career in finance, name the most critical value?
Honesty
What do you call financing of one year or less?
Short Term financing
What do you call a financial statement that projects income and expenses over a period of time?
Budget
What do you call real estate or other item as security for a loan?
Collateral
What is the name of the Act which was passed after Enron?
Sarbanes-Oxley Act
What is it called when a business has to close?
Bankruptcy
What do you call it when money is moved in and out of an organization?
Cash Flow
What are the two types of budget?
Traditional vs Zero Based
What is a EFT? Name a type.
Electronic funds transfer
ATM, ACH, POS, ECC
What do you call the financial report that looks at assets, liabilities, and equity?
The balance sheet
The number of business bankruptcies can increase or decrease based on this.
The nation's economy
What do you call the ratio where you look at the risk of the decision and the financial return you receive from it?
Risk-Return Ratio
What's the difference between equity and debt capital?
Money received from owners vs money received from loans
Name the two types of debt financing.
Short Term and Long Term
What do you call it in a profit and loss statement when you are negative?
Profit loss, in the red, in parathesis
What is affected if bills are not paid?
A firm's credit rating
Name a Long-Term Financing Need.
Start ups, M&As, R&D (new products), marketing, replacement, expansion
Name the four primary sources of funds.
Sales revenue, equity capital, debt capital, proceeds from the sale of assets
What do you call a firm who specializes in buying another firm's accounts receivable?
Factor
What is depreciation?
The process of dividing up the cost of an asset over a period of time as its used