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Bcor 2204 Finance Quiz 1 Questions With 100% Correct Verified Solutions

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BCOR 2204 FINANCE QUIZ 1 QUESTIONS WITH 100% CORRECT VERIFIED SOLUTIONS

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letter to stockholders


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typically, the first element of the annual stockholders' report and the
primary communication from management




Net Operating Profits After Taxes (NOPAT)

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A firm's earnings before interest and after taxes, EBIT x (1-T)




Net cash flow


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the mathematical difference between the firm's cash receipts and its cash
disbursements in each period




Financial Accounting Standards Board (FASB)


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the accounting profession's rule-setting body, which authorizes generally
accepted accounting principles (GAAP)




In a period of rising utilities past cost and expense ratios (percent-of-sales method),
when preparing pro forma financial statements and planning financing, will tend
to______.


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UNDERSTATE retained earnings and OVERSTATE the financing needed

,stock options


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securities that allow managers to buy shares of stocks at a fixed price




Sarbanes-Oxley Act of 2002 (SOX)


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An act aimed at eliminating corporate disclosure and conflict of interest
problems. Contains provisions about corporate financial disclosures and
the relationships among corporations, analysts, auditors, attorneys,
directors, officers, and shareholders.




marginal tax rate


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the tax rate that applies to the next dollar of income earned




Generally Accepted Accounting Principles (GAAP)


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, the practice and procedure guidelines used to prepare and maintain
financial records and reports; authorized by the Financial Accounting
Standards Board (FASB)




Corporation


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a legal business entity with rights and duties similar to those of individuals
but with a legal identity distinct from its owners




Statement of Retained Earnings


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reconciles the net income earned during a given year, and any cash
dividends paid, with the change in retained earnings between the start and
the end of that year. abbreviated form of "statement of stockholders equity"




short-term (operating) financial plans


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plans that specify short-term financial actions and the anticipated impact of
those actions

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