C214 - Financial Management Exam Questions and Answers 100% Pass

C214 - Financial Management Exam Questions and Answers 100% Pass Accounting - Answer- The business function responsible for creating the historical financial statements. Accounts Payable - Answer- A current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable. Accounts Receivable (AR) - Answer- A type of current asset which represents any money owed to the firm for services rendered. Accounts Receivable (AR) Turnover - Answer- Credit Sales/AR, a liquidity ratio. Accredited Investors - Answer- Investors deemed by the SEC to be sophisticated enough to purchase non-public securities. Accrual Accounting - Answer- Accounting system based on recording accounts based on historical prices and the matching principle. Accruals - Answer- Non-cash accounting accounts representing money either owed or due, typically in the short term. Accrued Wages - Answer- Wages that the company owes to employees, but has not paid yet. Accumulated Depreciation - Answer- The total amount of depreciation claimed against the fixed assets of the firm Additional Paid-in Capital (APIC) - Answer- An equity item on the balance sheet representing the proceeds (price at which stock is initially sold) minus the par value of the stock (note: par is usually $1 per share). Affirmative Covenants - Answer- A bond covenant that requires the firm to do something. Agency Costs - Answer- Costs that are incurred when management does not act in the best interests of shareholders.The costs that result from the principle-agent problem. American Depository Receipts (ADRs) - Answer- Certificates issued by U.S. banks and traded on U.S. markets but represent shares of foreign stocks Angels - Answer- Wealthy individuals who invest in new ventures for the return, thrill, and to help entrepreneurs. Annual Percentage Rate (APR) - Answer- The stated annual rate (but ignores compounding) Annual Percentage Yield (APY) - Answer- The actual yield including compounding. Also known as effective annual rate. Annuity - Answer- A series of payments or receipts. Annuity Due - Answer- An annuity that pays at the beginning of each period. Asset Pricing - Answer- The process of valuing assets Auction Market - Answer- A market with a physical location and where prices are determined by investors' willingness to pay. Average Collection Period (ACP) - Answer- AR/Daily Credit Sales, a liquidity ratio. Balance Sheet Equation - Answer- Assets = Liabilities + Equity Balance Sheets - Answer- One of the three main financial statements. It is a snapshot of the firm's assets, liabilities, and equity at any point in time. Bank Holding Company Act of 1956 - Answer- Federal regulation designed to protect the banking industry from competition. Beta - Answer- A measure of systematic risk for a particular security (or portfolio) that quantifies the security's (or portfolio's) price sensitivity to price changes in the market. Bond Indenture - Answer- The legal document detailing a bond. Bond Ratings - Answer- A rating assigned to a firm to measure the pr