# Statistics for Important finance terms Part 2

### General Stats

• This quiz has been taken 132 times
• The average score is 6 of 15

A summary of the financial balances of an individual or organisation. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.Balance Sheet
88%
The current worth of a future sum of money or stream of cash flows given a specified rate of return. Formula: PV = FVt / (1 + r)tPresent value
71%
The value of a current asset at a specified date in the future based on an assumed rate of growth over time. Formula: FVt = PV(1+r)tFuture value
69%
A company's financial statements showing the company’s revenues and expenses during a particular period.Income statement
69%
A business or firm owned and run by two or more partners.Partnership
64%
Cash and other assets on balance sheet that are expected to be converted to cash within a year. Examples: cash, accounts receivable, inventory, marketable securities, prepaid expensesCurrent assets
47%
A company's debts or obligations on the balance sheet that are due within one year. Examples: short term debt, accounts payable, accrued liabilities and other debts.Current liabilities
45%
A comprehensive report on a company's activities and financial performance throughout the preceding year for shareholders and other interested people. It includes balance sheet and income statement.Annual report
42%
A business created as a distinct legal entity composed of one or more individuals or entities.Company
31%
A commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.Joint venture
25%
A business with one owner who pays personal income tax on profits from the business. It's easy to set up since there is little government regulation.Sole proprietorship
23%
An investment should be acceptable if its discounted payback is less than some pre-specified number of years.Discounted payback rule
3%
The interest rate you are charged if you go overdrawn on your current account. Also known as the Effective Annual Interest Rate (EAR). r = ( 1 + i n ) n − 1Effective interest rate
2%
This is the primary goal of financial management.Maximise values of shares
2%
The market value of a firm is determined by its earning power and the risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends.Modigliani-Miller Theorem (M&M)
2%