Concepts Only Multi Choice Version, C214 Word Problems, WGU C214 Finance Management PVCC, C214 Study Guide, c214 Pre-Assessment, WGU C214 Finance Management PVCC, c214 quiz

C214 FINANCIAL MANAGEMENT, WGU C214

Concepts Only Multi Choice Version, C214 Word Problems, WGU C214 Finance Management PVCC, C214 Study Guide, c214 Pre-Assessment, WGU C214 Finance Management PVCC, c214 quiz

• notes, C214 Math Problems, Financial Ma...

Leave the first rating Terms in this set (1862) Social SciencesEconomics Finance Save Net MarginNet Income/Sales A profitability ratio Secured LoanSome type of asset is being used as collateral to back the loan.AccountingThe business function responsible for creating the historical financial statements.Accounts PayableA current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable.

Accounts Receivable (AR) A type of current asset which represents any money owed to the firm for services rendered.Accounts Receivable (AR) Turnover Credit Sales/AR, a liquidity ratio.Accredited InvestorsInvestors deemed by the SEC to be sophisticated enough to purchase non-public securities.Accrual AccountingAccounting system based on recording accounts based on historical prices and the matching principle.AccrualsNon-cash accounting accounts representing money either owed or due, typically in the short term.Accrued WagesWages that the company owes to employees, but has not paid yet.Accumulated Depreciation The total amount of depreciation claimed against the fixed assets of the firm Additional Paid-in Capital (APIC) An equity item on the balance sheet representing the proceeds (price at which stock is initially sold)

minus the par value of the stock (note: par is

usually $1 per share).Affirmative CovenantsA bond covenant that requires the firm to do something.Agency CostsCosts that are incurred when management does not act in the best interests of shareholders.The costs that result from the principle-agent problem.

American Depository Receipts (ADRs) Certificates issued by U.S. banks and traded on U.S.markets but represent shares of foreign stocks AngelsWealthy individuals who invest in new ventures for the return, thrill, and to help entrepreneurs.Annual Percentage Rate (APR) The stated annual rate (but ignores compounding) Annual Percentage Yield (APY) The actual yield including compounding. Also known as effective annual rate.AnnuityA series of payments or receipts.Asset PricingThe process of valuing assets.Auction MarketA market with a physical location and where prices are determined by investors' willingness to pay.Average Collection Period (ACP) AR/Daily Credit Sales, a liquidity ratio.Balance Sheet EquationAssets = Liabilities + Equity Balance SheetsOne of the three main financial statements. It is a snapshot of the firm's assets, liabilities, and equity at any point in time.Bank Holding Company Act of 1956 Federal regulation designed to protect the banking industry from competition.BetaA measure of systematic risk for a particular security (or portfolio) that quantifies the security's (or portfolio's) price sensitivity to price changes in the market.

Bond IndentureThe legal document detailing a bond.Bond RatingsA rating assigned to a firm to measure the probability of default by a company like S&P or Moody's.BondsVehicles by which corporations and governments raise debt capital.Book ValueThe accounting value recorded on the balance sheet.Bulldog BondsBonds issued in the UK and denominated in British pounds Business RiskThe variability associated with operating income.CAPEXCapital Expenditures, how much the firm spends on fixed assets.CAPMCapital Asset Pricing Model, a linear model that

relates risk and return: Re = Rf + Beta(Rm-Rf).

CapacityPercent of unused productivity of fixed assets.CapitalA financial asset that can be used by a firm. An example of capital may be cash held by a firm or machinery.Capital BudgetingShort for capital budgeting analysis.Capital Budgeting Analysis The process of deciding what assets to buy.