fads Flashcards

1
Q

The long-range time period on which the financial planning process focuses.

A

Planning Horizon

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2
Q

The process by which smaller investment proposals of each of a firm’s operational units are added up and treated as one big project.

A

Aggregation

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3
Q

A financial planning method in which accounts are varied depending on a firm’s predicted sales level

A

Percentage of sales approach

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4
Q

The addition to retained earnings divided by net income

A

Retention/plowback ratio

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5
Q

A firms assets divided by sales or the amount of assets needed to generate $1 in sales.

A

Capital intensity ratio

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