Finance 313 test 1 Flashcards
1
Q
Net working capital
A
Current Assets - Current Liabilities
2
Q
Liquidity
A
ability to convert to cash quickly without significant loss in value
3
Q
accounts receivable
A
what you sell but cash you haven’t received yet
4
Q
If an Asset goes up..
A
it’s a use of cash
5
Q
market value vs book value
A
book value- how much you bought it for
market value- how much it costs now
6
Q
income statement
A
revenues-expenses
7
Q
marginal tax rate
A
the percentage paid on the next dollar earned
8
Q
statement of cash flows
A
tells you how your cash flow changes
9
Q
balance sheet
A
snapshot of earnings
10
Q
operating activity
A
( statement of cash flows) includes net income and changes in most current accounts
11
Q
investment activites
A
changes in fixed assets
12
Q
financing activity
A
how you paid for your investments
