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Study sets matching "financial chapter 10"

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Study sets matching "financial chapter 10"

61 terms
Personal Financial Literacy Chapter 10
Adjustable Rate Mortgage
Annual Percentage Rate
Collateral
Cosigner
Mortgage with a rate that may go up or down. Rate changes at…
Interest rate that shows what a borrower is actually paying w…
Assets that have been pledged against a loan repayment.
A person, other than the original borrower who signs for a lo…
Adjustable Rate Mortgage
Mortgage with a rate that may go up or down. Rate changes at…
Annual Percentage Rate
Interest rate that shows what a borrower is actually paying w…
13 terms
Financial Accounting Chapter 10
Accrued Liabilities
Contingent Liability
Current Liabilities
Debt-to-Assets Ratio
Previously unrecorded expenses that need to be adjusted at th…
Potential liability that has arisen as the result of a past e…
Short-term obligations that will be paid in cash (or fulfille…
Measures the proportion of total assets financed by debt, com…
Accrued Liabilities
Previously unrecorded expenses that need to be adjusted at th…
Contingent Liability
Potential liability that has arisen as the result of a past e…
30 terms
Financial Literacy - Chapter 10 - Terms
bear market
bond
bull market
contingencies
period in the stock market when prices are steadily decreasing
a debt instrument issued by a corporation or government
period in the stock market when prices are steadily increasing
unplanned or possible events
bear market
period in the stock market when prices are steadily decreasing
bond
a debt instrument issued by a corporation or government
23 terms
Financial Accounting Chapter 10
Current Liabilities
Accrued Liabilities
Payroll Deductions
Sales Tax Payable
short-term obligations that will be paid or fulfilled within…
liabilities for expenses that have been incurred but not paid…
create current liabilities for your employer and include inco…
recorded as a liability (not an expense) until it is forwarde…
Current Liabilities
short-term obligations that will be paid or fulfilled within…
Accrued Liabilities
liabilities for expenses that have been incurred but not paid…
36 terms
Financial Accounting Chapter 10
Current Liabilities
The different types of current liabili…
Notes payable
Sales Taxes Payable
Is a debt that a company reasonably expects to pay (1) from e…
Notes payable. Accounts payable. Unearned revenues. Accrued l…
Companies record obligations in the form of written notes as
Many of the purchases in a retail stores are subject to sales…
Current Liabilities
Is a debt that a company reasonably expects to pay (1) from e…
The different types of current liabili…
Notes payable. Accounts payable. Unearned revenues. Accrued l…
14 terms
financial chapter 10
discretionary income
principal
interest
compound interest
what you have left over after you have paid your bills
the amount of money deposited by a saver
what the financial institution pays the saver
interest computed on the original principal plus accumulated…
discretionary income
what you have left over after you have paid your bills
principal
the amount of money deposited by a saver
25 terms
Personal Financial Planning (Chapter 10)
Insurance coverage that protects real…
Insurance that protects against the fi…
A cause of loss
Failing to act in a reasonable manner…
Property Insurance
Liability Insurance
Peril
Negligence
Insurance coverage that protects real…
Property Insurance
Insurance that protects against the fi…
Liability Insurance
10 terms
Chapter 10 Valuation of financial assets
Required rate of returns
Bond valuation
Stock valuation
Business risk
The minimum rate of return required by an investor, a stipula…
Bond valuation is a technique for determining the fair value…
Based on the present value of future cash flows
The inability of the firm to hold its competitive position an…
Required rate of returns
The minimum rate of return required by an investor, a stipula…
Bond valuation
Bond valuation is a technique for determining the fair value…
32 terms
Financial Algebra Chapter 10 Vocab
assets
bar graph
budget check-off matrix
budget line graph
A person's property or what is owned.
A type of graph or data display that uses rectangular bars to…
Where there are no amounts in the budget, but rather check ma…
A type of graph is used when a consumer is comparing two cate…
assets
A person's property or what is owned.
bar graph
A type of graph or data display that uses rectangular bars to…
19 terms
Financial Accounting Chapter 10
Bond Certificate
Bond Discount
Bond Premium
Callable Bonds
The bond document that each bondholder receives
The difference between the selling price and par when the bon…
The difference between the selling price and par when the bon…
Bonds that may be called for early retirement at the option o…
Bond Certificate
The bond document that each bondholder receives
Bond Discount
The difference between the selling price and par when the bon…
18 terms
Financial Accounting Chapter 10
Accrued Liabilities
Contingent Liability
Current Liabilities
Debt-to-Assets Ratio
Previously unrecorded expenses that need to be adjusted at th…
Potential liability that has arisen as the result of a past e…
Short-term obligations that will be paid in cash (or fulfille…
Measures the proportion of total assets financed by debt, com…
Accrued Liabilities
Previously unrecorded expenses that need to be adjusted at th…
Contingent Liability
Potential liability that has arisen as the result of a past e…
15 terms
Financial Peace - Chapter 10
accountability
free spirit
nerd
time poverty
The quality or state of being responsible, liable or answerable
a person who thinks everything will work out fine and typical…
a person who is picky about budgeting and details
a situation in which a person is lacking time, which leads to…
accountability
The quality or state of being responsible, liable or answerable
free spirit
a person who thinks everything will work out fine and typical…
36 terms
Chapter 10: Financial Institutions
Barter
Money
Fiat Money
Currency
The direct exchange of one set of goods or services for anoth…
Anything that serves as a medium of exchange, a unit of accou…
Money that only has value because the government says so. (Am…
Coins and paper bills used as money.
Barter
The direct exchange of one set of goods or services for anoth…
Money
Anything that serves as a medium of exchange, a unit of accou…
8 terms
Chapter 10 Financial Accounting
Issued Shares
Par Value
Statement of Stockholder's Equity
Stock Split
The number of shares sold or distributed to stockholders
An arbitrary amount that is stated on the face of the stock c…
A statement that reflects the differences between beginning a…
Creation of additional shares of stock and reduction of the p…
Issued Shares
The number of shares sold or distributed to stockholders
Par Value
An arbitrary amount that is stated on the face of the stock c…
19 terms
Chapter 10 (Financial)
Future Value-Annuity
Required Rate of return (discount rate)
Valuation of Bonds
Price of Bonds
...
-market risk... -companies seeking financial capital... -low return…
-cash flows discounted at Y... -Value of Y determined in bond ma…
PV of regular discounted by YTM + PV of principal
Future Value-Annuity
...
Required Rate of return (discount rate)
-market risk... -companies seeking financial capital... -low return…
17 terms
Chapter 10-Financial Planning
Liquidity
Interest
Consumer
Accumulate
The ability to easily convert financial assets into cash with…
The price that is paid for the use of another's money.
A person who purchases and uses goods or services.
To collect.
Liquidity
The ability to easily convert financial assets into cash with…
Interest
The price that is paid for the use of another's money.
38 terms
Chapter 10: Fundamental Financial Accounting Concepts
Amortization
Bond certificate
Bond Discount
Bond holder
systematic repayment of principle and interest over the life…
debts security used to obtain long term financing in which a…
difference between the selling price and the face amount of a…
the party BUYING the bond - also known as the LENDER OR THE C…
Amortization
systematic repayment of principle and interest over the life…
Bond certificate
debts security used to obtain long term financing in which a…
11 terms
Financial Accounting Chapter 10
Depreciation
Factors of Depreciation
Straight-line Method
Units of Production
The process of allocating an asset's cost to expense over it'…
-Estimated useful life... -Capital cost = amount that will be al…
(Cost - Residual Value)/ Useful life (yr)
(Cost - Residual Value)/ Useful life in Units
Depreciation
The process of allocating an asset's cost to expense over it'…
Factors of Depreciation
-Estimated useful life... -Capital cost = amount that will be al…
23 terms
Financial Lit Chapter 10
Bear market
Bond
Bull market
Contingencies
Period in the stock market when prices are steadily decreasing
A debt instrument issued by a corporation or government
Period in the stock market when prices are steadily increasing
Unplanned it possible events
Bear market
Period in the stock market when prices are steadily decreasing
Bond
A debt instrument issued by a corporation or government
18 terms
Financial Literacy- Chapter 10
short term needs
long term needs
scholarship
student loans
expenses beyond your regular monthly items
expenses that are costly and require years of planning and sa…
cash allowances awarded to students to help pay education costs
money borrowed to pay for education
short term needs
expenses beyond your regular monthly items
long term needs
expenses that are costly and require years of planning and sa…
39 terms
Chapter 10 Financial markets
Residual claim
limited liability of stockholders
legal entity
regular way of delivery
you are the last security holder in line to receive anything…
all you can lose is what you invested
can't sign own name like a corporation
T+3
Residual claim
you are the last security holder in line to receive anything…
limited liability of stockholders
all you can lose is what you invested
32 terms
Financial Literacy - Chapter 10 - Terms
bear market
bond
bull market
contingencies
period in the stock market when prices are steadily decreasing
a debt instrument issued by a corporation or government
period in the stock market when prices are steadily increasing
unplanned or possible events
bear market
period in the stock market when prices are steadily decreasing
bond
a debt instrument issued by a corporation or government
11 terms
Financial Accounting Chapter 10
Debt ratio
Face value
Determinable current liabilities
open account
liabilities as a percentage of total assets
the actual cash payment when a liability is due
liabilities that can be precisely measured and the amount of…
accounts set up between suppliers and those selling the suppl…
Debt ratio
liabilities as a percentage of total assets
Face value
the actual cash payment when a liability is due
26 terms
Financial Accounting Chapter 10
Bond Certificate
Bonds
Callable Bonds
Capital Lease
A legal document that indicates the name of the issuer, the f…
A form of interest-bearing notes payable issued by corporatio…
Bonds that the issuing company can redeem (buy back) at a sta…
A contractual agreement allowing one party (the lessee) to us…
Bond Certificate
A legal document that indicates the name of the issuer, the f…
Bonds
A form of interest-bearing notes payable issued by corporatio…
31 terms
Financial Markets: Chapter 10
Asset
Balance Sheet
Bank Capital
Bank Leverage
Anything of value owned by a person or a firm; in particular,…
A statement that shows an individual's or a firm's financial…
The difference between the value of a bank's assets and the v…
The ratio of the value of a bank's assets to the value of its…
Asset
Anything of value owned by a person or a firm; in particular,…
Balance Sheet
A statement that shows an individual's or a firm's financial…
18 terms
Financial Literacy Chapter 10
Stocks
Liquidity
Contingencies
Tax-Deferred
Shares of ownership in a corporation.
A measure of the ability to turn an investment into cash quic…
These are unplanned events, such as emergencies.
An investment is said to be this when taxes are not levied ag…
Stocks
Shares of ownership in a corporation.
Liquidity
A measure of the ability to turn an investment into cash quic…
20 terms
Financial Accounting Chapter 10
Corporate Charter
Authorized Shares
Issued Shares
Outstanding Shares
The document that authorizes the creation of the corporation.
The maximum number of shares the business may issue in each c…
The number of shares actually sold to stockholders.
The number of issued shares actually in the hands of stockhol…
Corporate Charter
The document that authorizes the creation of the corporation.
Authorized Shares
The maximum number of shares the business may issue in each c…
24 terms
Financial fitness chapter 10
Acceleration clause
Annual percentage rate
Balloon payment
Bankruptcy
A statement in a credit contract that requires you to repay t…
The financial charge calculated as a percentage of the amount…
A final loan payment that is much larger than the regular mon…
Legal process for selling most of a consumers property to hel…
Acceleration clause
A statement in a credit contract that requires you to repay t…
Annual percentage rate
The financial charge calculated as a percentage of the amount…
18 terms
Chapter 10 Financial Management
Accounting rate of return (ARR)
Capital budgeting
Capital rationing
Contingent projects
A rate of return on a capital project based on average net in…
The process of choosing the real assets in which the firm wil…
A situation where a firm does not have enough capital to inve…
Projects whose acceptance depends on the acceptance of anothe…
Accounting rate of return (ARR)
A rate of return on a capital project based on average net in…
Capital budgeting
The process of choosing the real assets in which the firm wil…
44 terms
Financial Accounting Chapter 10 Terms
Current Liability
Current Liabilities
Notes Payable
Notes Payable Journal Entry
A debt with two key features:... - It can reasonably be expecte…
1. Notes Payable... 2. Accounts Payable... 3. Unearned Revenues... 4.…
Obligations in the form of written promissory notes that usua…
Cash 100k... Notes Payable 100k... Interest Expense 4k... Interest P…
Current Liability
A debt with two key features:... - It can reasonably be expecte…
Current Liabilities
1. Notes Payable... 2. Accounts Payable... 3. Unearned Revenues... 4.…
41 terms
Financial Lit: Chapter 10
bear market
bond
bull market
contingencies
period in the stock market when prices are steadily decreasing
a debt instrument issued by a corporation or government
period in the stock market when prices are steadily increasing
unplanned or possible events
bear market
period in the stock market when prices are steadily decreasing
bond
a debt instrument issued by a corporation or government
21 terms
Financial Chapter 10
Articles of incorporation
Capital stock
Shares
Authorized stock
Describes the purpose, place and other details of entity
Individual's ownership of the corporation's capital
Basic unit of stock
Number of shares a corporation is authorized by a state to se…
Articles of incorporation
Describes the purpose, place and other details of entity
Capital stock
Individual's ownership of the corporation's capital
Personal Financial Literacy Chapter 10
Adjustable Rate Mortgage
Annual Percentage Rate
Collateral
Cosigner
Mortgage with a rate that may go up or down. Rate changes at…
Interest rate that shows what a borrower is actually paying w…
Assets that have been pledged against a loan repayment.
A person, other than the original borrower who signs for a lo…
Adjustable Rate Mortgage
Mortgage with a rate that may go up or down. Rate changes at…
Annual Percentage Rate
Interest rate that shows what a borrower is actually paying w…
22 terms
Financial management chapter 10
1. emergencies... 2.vacations... 3.social ev…
1.home ownership... 2.education... 3.retirem…
1. the amount of your discretionary in…
discretionary income
short term needs
long term needs
factors of the amount of money you will save
what you have left over after you have paid your bills
1. emergencies... 2.vacations... 3.social ev…
short term needs
1.home ownership... 2.education... 3.retirem…
long term needs
12 terms
Financial terms, chapter 10
capital budget
sensitivity analysis
fixed costs
variable costs
list of planned investment projects
analysis of the effects on project profitability of changes i…
costs that do not depend on the level of output
costs that change as the level of output changes
capital budget
list of planned investment projects
sensitivity analysis
analysis of the effects on project profitability of changes i…
20 terms
Chapter 10 financial
Person loans
Down payment
Cosigner
Annual percentage rate
Type of credit that is typically started at the time of purch…
A required portion of the purchase price paid at the time of…
someone other than the borrower who agrees to sign the loan d…
The rate that factors in all the financing costs so that borr…
Person loans
Type of credit that is typically started at the time of purch…
Down payment
A required portion of the purchase price paid at the time of…
17 terms
Chapter 10 Personal Financial Planning
Personal Financial Planning
Goals
Values
Liquidity
arranging to spend, save, and invest money to live comfortably
the things you want to accomplish
the beliefs and principles you consider important, correct, a…
the ability to easily convert financial assets into cash
Personal Financial Planning
arranging to spend, save, and invest money to live comfortably
Goals
the things you want to accomplish
16 terms
Financial Accounting Chapter 10
bond principal
par value
face amount
stated rate
the amount (a) payable at the maturity of the bond and (b) on…
another name for bond principal, or the maturity amount of a…
another name for bond principal, or the maturity amount of th…
rate of cash interest per period stated in the bond contract
bond principal
the amount (a) payable at the maturity of the bond and (b) on…
par value
another name for bond principal, or the maturity amount of a…
24 terms
Financial Accounting Chapter 10 Terms
bond certificate
bond indenture
bonds
callable bonds
A legal document that indicates the name of the issuer, the f…
A legal document that sets forth the terms of the bond issue.
A form of interest-bearing notes payable issued by corporatio…
Bonds that are subject to redemption (buy back) at a stated d…
bond certificate
A legal document that indicates the name of the issuer, the f…
bond indenture
A legal document that sets forth the terms of the bond issue.
27 terms
Financial Accounting Chapter 10
Bond certificate
Bond indenture
Bonds
Callable bonds
A legal document that indicates the name of the issuer, the f…
A legal document that sets forth the terms of the bond issue
A form of interest-bearing notes payable issued by corporatio…
Bonds that are subject to redemption (buy back) at a stated d…
Bond certificate
A legal document that indicates the name of the issuer, the f…
Bond indenture
A legal document that sets forth the terms of the bond issue
9 terms
Financial Accounting Chapter 10 Vocabulary
Bond
Par Value of a bond
Bond Certificate
Contract Rate
Written promise to pay the bond's par (or face) value and int…
Amount the bond issuer agrees to pay at maturity and the amou…
Document containing bond specifics such as issuer's name, bon…
Interest rate specified in a bond indenture (or note); multip…
Bond
Written promise to pay the bond's par (or face) value and int…
Par Value of a bond
Amount the bond issuer agrees to pay at maturity and the amou…
Financial Account Chapter 10 Terms
Accrued Liabilities/Expenses
Actuary
Amortization Table
Bankruptcy
The liability to pay an expense that has accrued during the p…
A statistician who performs computations involving assumption…
A schedule that indicates how installment payments are alloca…
A legal status in which the financial affairs of an illquid b…
Accrued Liabilities/Expenses
The liability to pay an expense that has accrued during the p…
Actuary
A statistician who performs computations involving assumption…
37 terms
Financial Mngmt Chapter 10
Why is valuing Common Stock difficult?
Dividend model
return on investment
current price
a. no fixed promised cash flow to shareholders... b. no maturity…
-classic approach to valuing common stock... -starts with 1 year…
R= (P1 - P0 + D1)/ P0... one yr discounted CF... P0= (D1 + P1)/(1…
PV of infinite dividend stream... P0= D1/(1 + R) + D2/(1 + R)^2…
Why is valuing Common Stock difficult?
a. no fixed promised cash flow to shareholders... b. no maturity…
Dividend model
-classic approach to valuing common stock... -starts with 1 year…
16 terms
Financial Management Chapter 10 Vocab
personal financial planning
goals
estimate
values
arranging to spend, save and invest money to live comfortably
things you want to accomplish
make an approximate calculation
the beliefs and principles you consider important
personal financial planning
arranging to spend, save and invest money to live comfortably
goals
things you want to accomplish
42 terms
Chapter 10: Indirect Financial Compensation and Non Financial Compensation
Indirect Financial Compensation (Benef…
Unemployment compensation
Workers' compensation
Discretionary benefits
All financial rewards not included in direct financial compen…
Provides workers whose jobs have been terminated through no f…
Provides a degree of financial protection for employees who i…
Benefit payments made as a result of unilateral management de…
Indirect Financial Compensation (Benef…
All financial rewards not included in direct financial compen…
Unemployment compensation
Provides workers whose jobs have been terminated through no f…
27 terms
Chapter 10 Vocab - Financial Accounting
Bearer (Coupon) Bonds
Bond Certificate
Bond discount
Bond Indenture
Bonds not registered. (pg. 455)
A legal document that indicates the name of the issuer, the f…
The amount by which a bond sells at less than its face value
A legal document that sets forth the terms of the bond issue
Bearer (Coupon) Bonds
Bonds not registered. (pg. 455)
Bond Certificate
A legal document that indicates the name of the issuer, the f…
50 terms
Chapter 10 Financial Management
The valuation of a financial asset is…
The prices of financial assets are bas…
The market-determined required rate of…
The discount rate depends on the marke…
T
F
T
T
The valuation of a financial asset is…
T
The prices of financial assets are bas…
F
11 terms
Chapter 10 Personal Financial Literacy
compound interest
credit card
debit card
easy-access-loan
Interest paid on the initial principal and on interest earned…
A card that allows a buyer to put off paying for a purchase u…
A card that allows a buyer to make purchases while immediatel…
A short-term loan that usually has a high interest rate.
compound interest
Interest paid on the initial principal and on interest earned…
credit card
A card that allows a buyer to put off paying for a purchase u…
39 terms
Financial Accounting: Chapter 10
Through what do you finance assets
Financing Assets via Debt
Financing Assets via Equity
Financing Assets
- via debt... - via equity
- interest must be paid when due (this can cause problems if…
- doesn't have to be paid back... - dilutes individual owner's p…
borrowing money in order to buy PPE ... (buying PPE is part of…
Through what do you finance assets
- via debt... - via equity
Financing Assets via Debt
- interest must be paid when due (this can cause problems if…
32 terms
Financial Accounting Chapter 10
Operational or operating assets
Financial assets
Tangible assets
Intangible assets
An asset acquired for or used in the income generating operat…
Cash or the ownership interest in a contract, such as an acco…
Having physical form. Accounting has never satisfactorily def…
A nonphysical right that gives a firm an exclusive or preferr…
Operational or operating assets
An asset acquired for or used in the income generating operat…
Financial assets
Cash or the ownership interest in a contract, such as an acco…
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