DOT

Question 1

The sum of all depreciation taken over the entire life of the tangible asset.

Answer 1

Accumulated Depreciation

Question 2

Variability in the Firm’s EBIT, which is affected by the cost structure, product demand characteristics, and intra-industry competitive positions.

Answer 2

Business Risk

Question 3

The mix of interest-bearing short- and long-term debts plus equity funds used by the firm.

Answer 3

Capital Structure

Question 4

Minimum required return on a new investment.

Answer 4

Cost of Capital

Question 5

The relationship between nominal returns, real returns, and inflation

Answer 5

Fisher Effect

Question 6

The difference between the cash flows a company will produce both with and without the investment it is thinking about making.

Answer 6

Incremental or Marginal Cashflows

Question 7

Method of Accounting whereby revenue is recorded when it is earned, whether or not revenues have been received in cash, and whereby expenses are recorded when it is incurred, even if the money has not been actually paid out.

Answer 7

Accrual Basis

Question 8

Involvers analyzing financial statements to help appraise a firm’s financial position.

Answer 8

Financial Ratio Analysis

Question 9

Shows the difference between a Firm’s revenues and its costs during a specified period of time.

Answer 9

Income Statement

Question 10

Often called as operating income or stands for earnings before income and tax rates.

Answer 10

EBIT