Hint | Answer | % Correct |
---|---|---|
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)t | Present 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)t | Future 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 expenses | Current 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 − 1 | Effective 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%
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