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Study sets matching "finance chapter 2"

67 terms
Finance Chapter 2
2-1. What four financial statements ca…
2-2.Who reads financial statements? Li…
2-4. Consider the following potential…
a.Global used $20 million of its avail…
In a firm's 10-K filing, four financial statements can be fou…
Investors. Investors are concerned with the risk inherent in…
...
Long-term liabilities would decrease by $20 million, and cash…
2-1. What four financial statements ca…
In a firm's 10-K filing, four financial statements can be fou…
2-2.Who reads financial statements? Li…
Investors. Investors are concerned with the risk inherent in…
5 terms
Personal Finance Chapter 2
compound interest
emergency fund
interest rate
Five Foundations
interest paid on interest previously earned
$500 in readily available cash to be used on in the event of…
% paid to a lender for use of borrowed money (in debt) OR % e…
The five steps to financial success
compound interest
interest paid on interest previously earned
emergency fund
$500 in readily available cash to be used on in the event of…
36 terms
Personal Finance Chapter 2
annuity
assets
balance sheet
budget
A fixed sum of money that occurs annually.
Items that one owns.
A financial statement that describes a person's financial pos…
A detailed financial report that looks forward, based on expe…
annuity
A fixed sum of money that occurs annually.
assets
Items that one owns.
31 terms
Finance Chapter 2
balance sheet
Assets
Liabilities
Shareholders equity
A snapshot of a firm, A financial statement that reports asse…
Economic resources (things of value) owned by a firm.... Current…
u know what dis is
Common Stock; Additional Paid in Capital; Preferred Stock; (T…
balance sheet
A snapshot of a firm, A financial statement that reports asse…
Assets
Economic resources (things of value) owned by a firm.... Current…
17 terms
Personal Finance Chapter 2
Internship
aptitudes
networking
potential earning power
A position in which a person receives training by working wit…
Natural abilities.
A way of making and using contacts to get job information and…
The amount of money you may earn over time.
Internship
A position in which a person receives training by working wit…
aptitudes
Natural abilities.
20 terms
Personal Finance Chapter 2
Job
Career
Standard of living
Trends
Work you complete to earn money
Commitment to work in a field you enjoy
Measure of quality of life
A general direction where something is developing or changing
Job
Work you complete to earn money
Career
Commitment to work in a field you enjoy
14 terms
Personal Finance: Chapter 2
Interest
Simple interest
Compound interest
Annuity
The rent charged for the use of money
Interest on a loan computed as a percentage of the loan amoun…
The process of earning interest on interest.
The payment of a series of equal cash flow payments at equal…
Interest
The rent charged for the use of money
Simple interest
Interest on a loan computed as a percentage of the loan amoun…
Finance Chapter 2
Saving-investment cycle
Surplus spending units
Deficit spending units
Brokers
The actual savings for a given period of time must equal the…
Net savers
Net investors
Bring together buyers and sellers of securities
Saving-investment cycle
The actual savings for a given period of time must equal the…
Surplus spending units
Net savers
19 terms
Personal Finance: Chapter 2
assets
balance sheet
budget
budget variance
Cash and other property with a monetary value.
A financial statement that reports what an individual or a fa…
A specific plan for spending income; also called a spending p…
The difference between the amount budgeted and the actual amo…
assets
Cash and other property with a monetary value.
balance sheet
A financial statement that reports what an individual or a fa…
12 terms
Personal Finance Chapter 2: Saving
compound interest
emergency fund
interest rate
Five Foundations
interest paid on interest previously earned
find hundred dollars in readily available cash to be used onl…
percentage paid to a lender for the use of borrowed money (in…
the five steps to financial success
compound interest
interest paid on interest previously earned
emergency fund
find hundred dollars in readily available cash to be used onl…
22 terms
DHS - Personal Finance - Chapter 2
Compound Interest
Emergency Fund
Interest Rate
Five Foundations
Interest paid on interest previously earned; credited daily,…
Five hundred dollars in readily available cash to be used onl…
Percentage paid to a lender for the use of borrowed money (in…
The five steps to financial success.
Compound Interest
Interest paid on interest previously earned; credited daily,…
Emergency Fund
Five hundred dollars in readily available cash to be used onl…
15 terms
Personal Finance Chapter 2
Interest Rate
Sinking Fund
Compound Interest
Emergency Fund
A rate which is either charged or paid for the use of money
Saving money over time for a large purchase
Interest paid on interest previously earned
A savings account that is set aside to be used only for emerg…
Interest Rate
A rate which is either charged or paid for the use of money
Sinking Fund
Saving money over time for a large purchase
19 terms
Consumer and Personal Finance Chapter 2
model
assumption
direct relationship
inverse relationship
is a simplification of reality used to understand the relatio…
is something that is accepted as being true.
is a positive relationship between two variables. When one va…
is a negative relationship between two variables. The variabl…
model
is a simplification of reality used to understand the relatio…
assumption
is something that is accepted as being true.
21 terms
Finance - Chapter 2
Spot markets
Futures markets
Money markets
Capital markets
The markets in which assets are bought/sold for "on-the-spot"…
Markets in which participants agree today to buy/sell an asse…
Financial markets in which funds are borrowed or loaned for s…
Financial markets for stocks and for intermediate- or long-te…
Spot markets
The markets in which assets are bought/sold for "on-the-spot"…
Futures markets
Markets in which participants agree today to buy/sell an asse…
10 terms
Personal Finance Chapter 2
Compound Interest
Emergency Fund
interest rate
Five Foundations
interest paid on interest previously earned; credited daily,…
five hundred dollars in readily available cash to be used onl…
percentage paid to a lender for the use of borrowed money (in…
the five steps to financial success
Compound Interest
interest paid on interest previously earned; credited daily,…
Emergency Fund
five hundred dollars in readily available cash to be used onl…
27 terms
ACP Finance Chapter 2
Balance Sheet
Income and Expense Statement
Budgets
Liquid Assets
Describes one's financial position: the assets one owns, th…
Measures financial performance over time. This statement tr…
monitor and control spending because they are based on ex…
Assets that are held in the form of cash or that can readily…
Balance Sheet
Describes one's financial position: the assets one owns, th…
Income and Expense Statement
Measures financial performance over time. This statement tr…
17 terms
Personal Finance - Chapter 2
budget
income
legal documents
court of law
a plan to use your money
money you make from a job
formal documents that can be used in court and government
a place where a judge makes decisions
budget
a plan to use your money
income
money you make from a job
15 terms
6e Personal Finance Chapter 2
Identity
Values
Lifestyle
Aptitude
A sense of who you are and how you fit in
Ideals in life that are important to you
The way people choose to live their lives, based on the value…
A natural physical or mental ability that allow you to do cer…
Identity
A sense of who you are and how you fit in
Values
Ideals in life that are important to you
5 terms
Chapter 2 Foundations in Finance
Compound Interest
Emergency Fund
Five Foundations
Interest Rate
Interest paid on interest previously earned, credited daily,…
Five hundred dollars in readily available cash to be used onl…
Save $500... Get out of debt... Pay cash for your car... Pay cash for…
Percentage paid to the lender for the use of borrowed money (…
Compound Interest
Interest paid on interest previously earned, credited daily,…
Emergency Fund
Five hundred dollars in readily available cash to be used onl…
22 terms
Personal Finance Chapter 2
fiat money
money supply
budget deficit
budget surplus
money deemed by the government to be legal tender
the total amount of money in circulation
a financial situation that occurs when more money is spent th…
a financial situation that occurs when more money is received…
fiat money
money deemed by the government to be legal tender
money supply
the total amount of money in circulation
9 terms
Chapter 2 Personal Finance
Compound Interest
Emergency Fund
Interest Rate
Five Foundations
interest paid on interest previously earned; credited daily,…
five hundred dollars in readily available cash to be used onl…
percentage paid to a lender for the use of borrowed money (in…
the five steps to financial success, save a 500$ emergency fu…
Compound Interest
interest paid on interest previously earned; credited daily,…
Emergency Fund
five hundred dollars in readily available cash to be used onl…
30 terms
Personal Finance Chapter 2 Terms
Minimum Wage
Overtime Pay
Comission
Entrepreneur
The lowest pay rate allowed by law for each regular hour of w…
Pay received for hours worked in addition to regular hours
A set fee or percentage of a sale paid to an employee instead…
A person who takes the risks of being self-employed and ownin…
Minimum Wage
The lowest pay rate allowed by law for each regular hour of w…
Overtime Pay
Pay received for hours worked in addition to regular hours
40 terms
Principles of Finance - Chapter 2
3 different business transfers
Direct transfers
Underwrites
Financial intermediary
1) direct transfers 2) underwrites 3) financial intermediary
(money and securities) occur when a business sells its stocks…
transfers may also go through an investment bank (iBank) such…
a bank, an insurance company, or a mutual fund. Here the inte…
3 different business transfers
1) direct transfers 2) underwrites 3) financial intermediary
Direct transfers
(money and securities) occur when a business sells its stocks…
25 terms
Finance Chapter 2
Balance Sheet
Net working capital
Liquidity
Financial Leverage
Financial statement showing a firm's accounting value on a pa…
Current assets less current liabilities
Refers to the spread and ease with which an asset can be conv…
The use of debt in a firm's capital structure. Increases the…
Balance Sheet
Financial statement showing a firm's accounting value on a pa…
Net working capital
Current assets less current liabilities
12 terms
Finance Chapter 2
What does the balance sheet contain?
Asset Liquidity order
What value is on the balance sheet?
Corporations in the US pay taxes on wh…
Assets (left side), liabilities (right side), and equity (rig…
Cash... Accounts receivable... Inventory... Fixed Assets
Book value
Graduated - the more money you make, the higher taxes you pay
What does the balance sheet contain?
Assets (left side), liabilities (right side), and equity (rig…
Asset Liquidity order
Cash... Accounts receivable... Inventory... Fixed Assets
33 terms
Finance 3000 Chapter 2
balance sheet
financial statement
liquidity
current assets
the financial statement that reports a firms assets, liabilit…
statement that provides an accounting-based picture of a firm…
the ease of conversion of an asset into cash at a fair value
assets that will normally convert to cash within one year
balance sheet
the financial statement that reports a firms assets, liabilit…
financial statement
statement that provides an accounting-based picture of a firm…
75 terms
International Finance Chapter 2
D
C
B
D
Recently, the U.S. experienced an annual balance of trade rep…
A high home inflation rate relative to other countries would…
If a country's government imposes a tariff on imported goods,…
____ purchases more U.S. exports than the other countries lis…
D
Recently, the U.S. experienced an annual balance of trade rep…
C
A high home inflation rate relative to other countries would…
25 terms
Personal Finance Chapter 2 Vocab
Benefits
Commission
Disposable Income
Dividends
Forms of pay other than salary or wages
A set fee or percentage of a sale paid to an employee instead…
Money available to spend or save after taxes have been paid
A portion of a corporation's profits distributed to stockhold…
Benefits
Forms of pay other than salary or wages
Commission
A set fee or percentage of a sale paid to an employee instead…
22 terms
Finance - Chapter 2 ..
The Money Market
o U.S. Treasury bills (T-bills, or jus…
ask price
bid price
o Many of these securities trade in large denominations, and…
the most marketable of all money market instruments.--- repre…
the price you would have to pay to buy a T-bill from a securi…
slightly lower price you would receive if you wanted to sell…
The Money Market
o Many of these securities trade in large denominations, and…
o U.S. Treasury bills (T-bills, or jus…
the most marketable of all money market instruments.--- repre…
15 terms
Personal Finance ~ Chapter 2 Vocabulary
Identity
Values
Lifestyle
Aptitude
Who a person is and how they fit in.
The ideals in life that are important to you.
The way people choose to live their lives, based on the value…
A natural physical or mental ability that allows you to do ce…
Identity
Who a person is and how they fit in.
Values
The ideals in life that are important to you.
15 terms
Personal Finance TC Chapter 2
Personal Balance Sheet
Assets
Liabilities
Net Worth or Equity
a financial statement that lists items of value owned, debts…
anything of value that is owned
anything that is owed to someone else
A measure of the level of your wealth. Assets minus your debts.
Personal Balance Sheet
a financial statement that lists items of value owned, debts…
Assets
anything of value that is owned
11 terms
Personal finance chapter 2
Calculation for net worth
Insolvency
Cash flow statement (personal income o…
discretionary income
Items of value-amounts owed=net worth
The inability to pay debts when they are due because of liabi…
A financial statement that summarizes cash receipts and payme…
money left over after paying for housing, food, and other nec…
Calculation for net worth
Items of value-amounts owed=net worth
Insolvency
The inability to pay debts when they are due because of liabi…
35 terms
Finance Chapter 2
finance/ financial statements
balance sheet
assets
5 examples of current assets
-about the future, looks at market value, finance is the valu…
-provides a snapshot of the firm's status (in assets and liab…
-use of funds... -current= short term investments, last 30-60 da…
1. cash and marketable securities= hold cash in reserve to ke…
finance/ financial statements
-about the future, looks at market value, finance is the valu…
balance sheet
-provides a snapshot of the firm's status (in assets and liab…
Personal Finance Chapter 2
Car Loan
Credit Card
Credit Score
Debt Collector
a short-term, personal loan to purchase a car; monthly paymen…
a plastic card used to buy goods or services using debt
an assigned number to signal to lenders a persons ability to…
someone who collects debts owed to others
Car Loan
a short-term, personal loan to purchase a car; monthly paymen…
Credit Card
a plastic card used to buy goods or services using debt
48 terms
Personal Finance Chapter 2
Personal Finance Statements
Balance Sheet
Income and Expense Statement
Budget
planning tools that provide an up-to-date evaluation of your…
Describes a person's financial position the assets you hold m…
measures financial performance over time.
A detailed financial report that looks forward, based on expe…
Personal Finance Statements
planning tools that provide an up-to-date evaluation of your…
Balance Sheet
Describes a person's financial position the assets you hold m…
9 terms
Chapter 2 Finance Terms
balance sheet
net working capital
Liquidity
assets
financial statement showing a firms accounting and economic v…
difference betweena firms current assets and current liabilit…
speed and ease with which an asset can be converted to cash
...
balance sheet
financial statement showing a firms accounting and economic v…
net working capital
difference betweena firms current assets and current liabilit…
14 terms
Finance chapter 2 terms
10-k
10-q
balance sheet
book value
form to send financial statements with the U.S securities and…
form to send financial statements with the U.S securities and…
statement of financial position, lists assets and liabilities
value shown in a firm's financial statements
10-k
form to send financial statements with the U.S securities and…
10-q
form to send financial statements with the U.S securities and…
65 terms
Chapter 2 - Personal Finance
b
e
b
d
26. Money management refers to... A. Preparing personal financia…
27. Which of the following is NOT a component of money manage…
28. A home file should be used for storing... A. All financial d…
29. Which of the following financial documents would most lik…
b
26. Money management refers to... A. Preparing personal financia…
e
27. Which of the following is NOT a component of money manage…
21 terms
Finance Chapter 2
Spot Markets
Futures Markets
Money Markets
Capital Markets
The markets in which assets are bought or sold for "on-the-sp…
The markets in which participants agree today to buy or sell…
The financial markets in which funds are borrowed or loaned f…
The financial markets for stocks and for intermediate or long…
Spot Markets
The markets in which assets are bought or sold for "on-the-sp…
Futures Markets
The markets in which participants agree today to buy or sell…
25 terms
finance chapter 2
the balance sheet
the income statement
cash flows
statement of retained earnings
represents a picture taken on a specific date that shows a fi…
presents the result of business operations during a specific…
designs to show how the firm's operations have affected its c…
changes in the common equity accounts between balance sheet d…
the balance sheet
represents a picture taken on a specific date that shows a fi…
the income statement
presents the result of business operations during a specific…
49 terms
finance chapter 2
debt, equity, and derivative
financial instruments
direct acquisition/ownership
indirect acquisition/ownership
3 categories of securities
classified and acquired by either direct or indirect methods
investors actually own the financial instruments (direct owne…
investors own an equity (a shares of a fund) that, in turn, o…
debt, equity, and derivative
3 categories of securities
financial instruments
classified and acquired by either direct or indirect methods
37 terms
Chapter 2 Finance
judicial review
Marbury vs. Madison
jurisdiction
in personam jurisdiction
the process by which courts decide on the constitutionally of…
1803: When judicial review was established
the authority of a court to hear and decide a specific action
court jurisdiction over the "person" involved in a legal acti…
judicial review
the process by which courts decide on the constitutionally of…
Marbury vs. Madison
1803: When judicial review was established
18 terms
Finance: Chapter 2
State of Financial Position
Non-cash items
Cash flow from assets
Operating cash flow
Financial statement showing a firm's accounting value on a pa…
Expenses charged against revenues that do not directly affect…
The total of cash flow to bondholders and cash flow to shareh…
Cash generated from a firm's normal business activities.
State of Financial Position
Financial statement showing a firm's accounting value on a pa…
Non-cash items
Expenses charged against revenues that do not directly affect…
30 terms
Finance Chapter 2
direct transfer
indirect transfer through investment b…
indirect transfer through financial in…
physical asset markets
occurs when a business sells its stocks or bonds directly to…
when transfers go through an investment bank, who facilitates…
when transfers go through a bank, insurance company or mutual…
"tangible" or "real" asset markets that are for products like…
direct transfer
occurs when a business sells its stocks or bonds directly to…
indirect transfer through investment b…
when transfers go through an investment bank, who facilitates…
36 terms
finance chapter 2
economics
scarcity
choice
resources
the science of decision making about the allocation of scare…
people have wants and needs that are greater than can be sati…
deciding which wants and needs will be satisfied and which wi…
means available to develop solutions for their needs
economics
the science of decision making about the allocation of scare…
scarcity
people have wants and needs that are greater than can be sati…
46 terms
Finance Chapter 2
Balance Sheet
Assets.
Fixed asset
Current asset
is a snapshot of the firm. It is a convenient means of organi…
listed on the left side of balance sheet and are classified a…
is on that has a relatively long life. Can be tangible such a…
has a life of less than one year. This means that the asset w…
Balance Sheet
is a snapshot of the firm. It is a convenient means of organi…
Assets.
listed on the left side of balance sheet and are classified a…
5 terms
Vocab Chapter 2 -Finance
Compound Interest
Emergency Fund
Interest Rate
Five Foundations
Interest paid on interest previously earned; credited daily,…
Five hundred dollars in readily available cash to be used onl…
Percentage paid to a lender for the use if borrowed money (In…
The five steps to financial success.
Compound Interest
Interest paid on interest previously earned; credited daily,…
Emergency Fund
Five hundred dollars in readily available cash to be used onl…
61 terms
Chapter 2 Finance
Analysis of Financial Statements
2-1 FINANCIAL REPORTS (pg.19)
-Annual Report (pg.19)
2-2 FINANCIAL STATEMENTS (pg.19-27)
In this chapter, we discuss how to evaluate a firm's current…
The financial statements indicate what actually happened to t…
A report issued by a corporation to its stockholders that con…
...
Analysis of Financial Statements
In this chapter, we discuss how to evaluate a firm's current…
2-1 FINANCIAL REPORTS (pg.19)
The financial statements indicate what actually happened to t…
22 terms
Finance chapter 2
economics
scarcity
choice
resources
science of decisions making about the allocation of scare res…
people have unlimited needs and wants but we have limited res…
deciding which wants and needs will be satisfied and which wi…
available to develop solutions for unsatisfied needs and wants
economics
science of decisions making about the allocation of scare res…
scarcity
people have unlimited needs and wants but we have limited res…
28 terms
Chapter 2- Finance
The Role of Financial Markets
Efficient Transfer
Transfer of Capital
Direct Transfer ... Individual vs. Corpor…
- to efficiently transfer funds ... - from entities who have the…
- borrowers receive funds at the lowest possible cost ... - lend…
Three ways to transfer of capital:... 1. Direct transfer ... 2. Ind…
- Firm seeking funds directly approaches investors... - FFFs... -An…
The Role of Financial Markets
- to efficiently transfer funds ... - from entities who have the…
Efficient Transfer
- borrowers receive funds at the lowest possible cost ... - lend…
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