Final Exam Review- Weeks 11-13 Flashcards
Why is public speaking important?
Life skills, Personal, School, Career and work
Should you use slides as a script?
no
What are listening barriers?
outside distractions, personal concerns, information overload, and prejudice
Critical listening
process of learning to evaluate the quality, appropriateness, value, and importance
Critical thinking
the mental process of making judgments of conclusions presented
Accounting
process of measuring, interpreting, and communicating financial information to enable people inside and outside the firm to make informed decisions
Accounting cycle
set of activities involved in converting information about transactions into financial statements
Accrual accounting
involves stating revenues and expenses as they occur, not necessarily when cash is received or paid out.
Cash accounting
does not report any income or expenses until cash actually changes hands
What is the accounting equation?
Assets= liabilities + owner’s equity
Asset
anything of value owned or leased by a business’
Liabilities
claims against a firm’s assets by a creditor
Owner’s equity
owner’s initial investment in the business plus profits that were made to owners over time in firm in form of cash dividends
Balance sheet
statement of a firm’s financial position on a particular date
Income statement
financial record of a firm’s revenues, expenses, and profits over a longer period of time, usually a quarter or year
Build up approach
To project sales, estimate the number of potential buyers in a geographic area. Then, multiply by the average expected sales
Competitive approach
To project sales, look at other similar companies in similar areas to see what information you can discover
Executive judgement
To project sales, the company uses the intuition of 1+ executives
Delphi technique
To project sales, experts create initial forecasts, submit them to the company for averaging, and then refine them
Time series analysis
Uses firm’s historical sales data to discover a pattern in sales over time
Market test
making a product available to buyers in one or more test areas and measuring purchases and consumer responses to market effort
Statement of cash flows
provides investors and creditors with relevant information about a cash recept and cash payment for operations, investments, and financing during accounting period
Statement of owner’s equity
designed to show the components of the change in equity from the end of one fiscal year to the end of the next
What does ratio analysis measure?
the firm’s liquidity, profitability, and reliance on debt financing, and the effectiveness of resource utilization. Assists managers by interpreting actual performance and making comparisons to what should have happened
Liquidity ratios
measure a firm’s ability to meet it’s short term obligations when they must be paid
Current ratio
mainly used to give an idea to the company’s ability to pay back it’s short-term liabilities with it’s short-term assets
Acid-test (or quick) ratio
measures the ability of a firm to meet it’s debt payment on short notice- the amount of assets that can quickly be turned into cash without selling assets
Activity rations
measure the effectiveness of management’s use of the firm’s resources
Inventory ratio
Shows how many times a company’s inventory is sold and replaced over a period. They can vary widely. Higher total ratios indicate greater efficiency
Total asset turnover ratios
Indicates how much in sales each dollar invested in assets generates
Receivables turnover ratio
An accounting measure used to quantify a firm’s effectiveness in extending credit as well as collecting debts
profitability ratios
measure the organization’s overall financial performance by evaluating it’s ability to generate revenues in excess of operating costs and other expenses
Gross profit margin
indicates the percentage of sales dollars available for expenses and profit after the cost of merchandise is deducted from sales to measure how much out of every dollar of sales a company actually keeps on earnings
Net profit margin
indicates the profit per sales dollar after all expenses are deducted from sales (after tax)
Return on stockholder’s equity
reveals the % of profit after income taxes that corporation earned on its average common stockholder’s balances during the year
leverage ratios
measure the extent to which a firm relies on debt financing