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RETS > Financial Calcs Definitions > Flashcards

Financial Calcs Definitions Flashcards

1
Q

Capital Cost Allowance (CCA)

A

A tax deduction for the depreciation of eligible capital property.

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2
Q

Depreciation Expense

A

The allocation of the cost of a tangible asset over its useful life.

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3
Q

Cost of Goods Sold (COGS)

A

Direct costs attributable to the production of goods sold by a company.

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4
Q

Net Income

A

Total revenue minus total expenses when total revenue is greater.

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5
Q

Shareholders’ Equity

A

The residual interest in the assets of the entity after deducting liabilities.

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6
Q

Gross Rent Multiplier (GRM)

A

A measure used in real estate investing to compare properties and determine their value relative to their income.

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7
Q

Return on Investment (ROI)

A

A measure used to evaluate the efficiency or profitability of an investment.

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8
Q

Debt Service Coverage Ratio (DSCR)

A

A measure of a company’s ability to use its operating income to repay its debt obligations.

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9
Q

Operating Expense Ratio (OER)

A

The ratio of a property’s operating expenses to its gross operating income.

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10
Q

Cash on Cash Return

A

The rate of return on the actual cash invested in a property.

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11
Q

Amortization

A

The process of gradually writing off the initial cost of an asset.

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12
Q

Annual Percentage Rate (APR)

A

The annual rate charged for borrowing or earned through an investment, expressed as a percentage.

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13
Q

Value of Cash

A

The amount of cash included in total current assets.

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14
Q

Value of Machinery

A

The valuation of machinery as part of total non-current assets.

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15
Q

Total Non-Current Assets

A

The sum of all long-term assets not expected to be converted into cash within a year.

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16
Q

Share Capital

A

The amount of share capital included in shareholders’ equity.

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17
Q

Total Shareholders’ Equity

A

The sum of all equity investments made by shareholders, including retained earnings.

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18
Q

Total Liabilities and Shareholders’ Equity

A

The combined total of all liabilities and shareholders’ equity, equal to total assets.

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19
Q

Income Tax Expense

A

The amount of expense recognized for the government tax related to taxable profit.

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20
Q

Building’s Capital Cost Allowance (First Year)

A

The deduction for a building’s depreciation in the first year.

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21
Q

UCC (Undepreciated Capital Cost)

A

The remaining value of a depreciable property after accounting for the annual CCA.

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22
Q

Revenue

A

Total income generated by the sale of goods or services.

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23
Q

Operating Expenses

A

The costs required for a company to run its day-to-day operations.

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24
Q

Net Operating Income (NOI)

A

The income from a property after operating expenses are deducted.

25
Q

Total Debt Service

A

The cash required for a specific period to cover the repayment of interest and principal on a debt.

26
Q

Gross Operating Income

A

The total income from a property before any expenses are deducted.

27
Q

Principal

A

The original sum of money borrowed in a loan or put into an investment.

28
Q

Annual Pre-Tax Cash Flow

A

The amount of cash a property generates in a year before taxes.

29
Q

Total Cash Invested

A

The sum of all cash put into an investment.

30
Q

Debt Yield

A

The return a lender gets on their loan, calculated as the property’s NOI divided by the loan amount.

31
Q

Break-Even Occupancy

A

The occupancy rate at which total income equals total expenses.

32
Q

Gross Rent Multiplier (GRM)

A

A ratio used to evaluate the profitability of income-generating properties.

33
Q

Effective Gross Income (EGI)

A

The total income from a property after accounting for vacancy losses and additional income streams.

34
Q

Total Debt Service

A

The total amount of required payments on all debt over a specific period.

35
Q

Loan-to-Value Ratio (LTV)

A

A financial ratio that compares the loan amount to the appraised value of the property.

36
Q

Cost of Goods Sold (COGS)

A

The direct costs attributable to the production of the goods sold in a company.

37
Q

Net Present Value (NPV)

A

Measures the profitability of a project by calculating the present value of expected future cash flows minus the initial investment.

38
Q

Internal Rate of Return (IRR)

A

The discount rate that makes the NPV of all cash flows from a particular project equal to zero.

39
Q

Current Ratio

A

Measures a company’s ability to pay short-term obligations with its current assets.

40
Q

Quick Ratio (Acid-Test Ratio)

A

Measures a company’s ability to meet short-term obligations with its most liquid assets.

41
Q

Debt-to-Equity Ratio

A

Measures a company’s financial leverage by comparing its total liabilities to its shareholders’ equity.

42
Q

Return on Equity (ROE)

A

Measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested.

43
Q

Earnings Per Share (EPS)

A

Measures a company’s profitability by calculating the portion of a company’s profit allocated to each outstanding share of common stock.

44
Q

Price-to-Earnings Ratio (P/E Ratio)

A

Measures a company’s current share price relative to its per-share earnings.

45
Q

Annual Depreciation Expense

A

The annual reduction in the value of an asset over its useful life.

46
Q

Book Value of Building

A

The current value of a building after accounting for depreciation.

47
Q

Unit Entitlement

A

The percentage of the entire strata lot area owned by a particular owner.

48
Q

Monthly Share of Common Expenses

A

The monthly share of the annual common expenses owed by each strata lot owner.

49
Q

Total Current Assets

A

The sum of all assets expected to be converted into cash within a year.

50
Q

Total Non-Current Assets

A

The sum of all long-term assets not expected to be converted into cash within a year.

51
Q

Total Shareholders’ Equity

A

The value remaining after all liabilities are subtracted from total assets.

52
Q

Total Liabilities and Shareholders’ Equity

A

The sum of total liabilities and shareholders’ equity, which equals total assets.

53
Q

Purchase Price of Building

A

The original cost of the building calculated based on its economic life and annual depreciation.

54
Q

Remaining Depreciable Base or UCC

A

The remaining value of an asset eligible for capital cost allowance.

55
Q

Total Non-Current Assets

A

Sum of all long-term assets not expected to be converted into cash within a year.

56
Q

Total Shareholders’ Equity

A

Value remaining after all liabilities are subtracted from total assets.

57
Q

Total Liabilities and Shareholders’ Equity

A

Sum of total liabilities and shareholders’ equity, which equals total assets.

58
Q

Purchase Price of Building

A

Original cost of the building calculated based on its economic life and annual depreciation.

59
Q

Remaining Depreciable Base or UCC

A

Remaining value of an asset eligible for capital cost allowance.

RETS (18 decks)

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