What are (1) Interest Rate: the cost of borrowing in percentage terms, and (2) Points: each point assessed represents 1% of the loan amount.
100
Three levels of taxes
What are federal, state, and local?
100
The value of capital that is lost over time
What is depreciation?
100
Gives a financial summary of the firm’s operating
results during a specific period
What is an income statement?
100
Involves methods of calculation and interpreting financial
ratios to analyze and monitor the firm’s performance
What is a ratio analysis?
200
A score that represents the risk associated with offering a loan or line of credit
What is a credit rating?
200
Results in higher taxes as a percentage of income on those with more income
What is a progressive tax?
200
The time period over which an asset is depreciated
What is depreciable life?
200
Cash or assets that are expected to be converted to cash
within one year or less
What are current assets?
200
Measures a firm’s ability to meet short‐term financial obligations
What is a liquidity ratio?
300
The “5 C’s of Credit”
What is character, capacity, collateral, capital, and condition.
Make sure you know what each means.
300
Definition and formula from capital gains.
What is profits resulting from investments in a capital asset?
Resale price - Original purchase price
300
1940s Indians owner discussed in class?
Who is Bill Veeck? Make sure you know his story.
300
Formula for Net Working Capital
What is current assets - current liabilities?
300
Measures how much of a firm’s assets are tied up in inventory
What is a quick ratio?
400
Represents amounts owed to vendors and suppliers for
services that have ben provided or products delivered
What is accounts payable?
400
Results in higher taxes as a percentage of income on those with less income
What is a regressive tax?
400
Evenly distribute depreciation amount across some number of years
What is straight line depreciation?
400
The Security Exchange Commission (SEC) requires corporations to give these four financial statements to stockholders
What are income statements, balance sheets, statement of cash flows, and statement of retained earnings?
400
Measures how effectively a firm manages its assets
What is an activity ratio?
500
An investor who invests in a private company and provides
funds to a firm in exchange for owning a portion of the company
What is a venture capitalist?
500
Two types of sales taxes have become the most popular
approaches to securing public tax support for the construction/renovation of major
league sports facilities
What is car rental tax and bed taxes?
500
Roster Depreciation Allowance
What is RDA?
Part of the Veeck question. He claimed his roster depreciates (basically that is what he owns; a team roster). See page 4 of the Depreciation PDF
500
Items on an income statement
What are operating expenses, interest expenses, taxes, preferred stock dividends, earnings per share, and dividend per share?
500
This is based on the cost of a firm’s asset minus its accumulated depreciation
What is book value?
Total Assets - Total Liabilities