Term
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Definition
| Total taxes paid divided by taxable income. |
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Term
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Definition
| Financial statement that shows a firm's financial position (assets, liabilities, and equity) at a point in time. |
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Term
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Definition
| The net value of an asset or liability recorded on the financial statements - normally reflects historical cost. |
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Term
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Definition
| The cash flow that a firm generates for its investors in a given period, excluding cash inflows from the sale of securities to investors. |
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Term
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Definition
| Allocation of the cost of an asset over its estimated life to reflect the wear and tear on the asset as it is used to produce the firm's goods and services. |
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Term
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Definition
| Net income divided by the number of common shares outstanding. |
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Term
| Generally accepted accounting principles (GAAP) |
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Definition
| A set of rules that defines how companies are to prepare financial statements. |
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Term
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Definition
| A financial statement that reports a firm's revenues, expenses, and profits or losses over a period of time. |
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Term
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Definition
| The tax rate paid on the last dollar of income earned. |
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Term
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Definition
| The price at which an item can be sold. |
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Term
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Definition
| A financial statement that shows a firm's cash receipts and cash payments for a period of time. |
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Term
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Definition
| Stock that the firm has repurchased from investors. |
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Term
| Cash flows from financing activities include all but one of the following: |
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Definition
- Cash payments on the principal of long-term debt
- Cash purchases of treasury stock
- Cash proceeds from a bank loan
(does not include issuing and paying out on insurance contracts) |
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Term
| Which one of the following is not a cash flow from investing activities? |
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Definition
- Cash payments of dividends to shareholders
(investing activities include buying or selling of land, buildings, and plant and equipment; issuing and paying out on insurance contracts; and buying and selling bonds or stock of other firms) |
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