Remojudytask

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - ANSWER-Business finance What is the primary difference between finance and accounting? - ANSWER-Finance focuses on the future, while accounting is generally backward-looking. Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? - ANSWER-Investments What is the primary ...

Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility Comparing a firm's ratios across time. - ANSWER-Trend Analysis Comparing a firm's financial ratios to other firms' ratios or industry averages. - ANSWER-Cross-sectional Analysis As an active investor, Maria is analyzing her portfolio to decide if there are any stocks she should...

Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility Comparing a firm's ratios across time. - ANSWER-Trend Analysis Comparing a firm's financial ratios to other firms' ratios or industry averages. - ANSWER-Cross-sectional Analysis As an active investor, Maria is analyzing her portfolio to decide if there are any stocks she should...

What is another name for the cost of capital? - ANSWER-Discount rate What is the name for the minimum rate of return that an investor or lender will accept for investments? - ANSWER-Required rate of return The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is the real interest rate? - ANSWER-5% (Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%) Which action reduces the future value of cash flows? - ANSWER-Receive all cash flows later than expected....

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? Business finance Real estate Investments Financial institutions - ANSWER-Correct! Business finance is the area of finance that deals with uses and sources of funding to increase the value of the firm. What is the primary difference between finance and accounting? Finance focuses on the future, while accounting is generally backward-looking...

In which way is accounting different from finance? Accounting forecasts future performance, given the past, while finance records past performance. Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on bringing in capital. Accounting is about budgeting, saving, and borrowing, while finance is about investing, forecasting, and lending. - ANSWER-Accounting forecasts future performance, given the past, wh...

Current Ratio - ANSWER-Is a liquidity ratio. Short-term debt paying ability. Current Assets/Current Liabilities Quick Ratio - ANSWER-Also known as acid test. Is a liquidity ratio. Provides a more accurate cash position of firm by excluding inventory from current assets. Current Assets-Inventory/Current Liabilities AR Turnover - ANSWER-Is an activity/asset management ratio. Helps to identify how quickly these accounts receivables turn over during a given year. A rate of 12 indicated...

In which way is accounting different from finance? - ANSWER-Accounting is backward looking, while finance is focused on the future. What is the main question that both individuals and companies must consider when making financial decisions to reach a goal? - ANSWER-Will the benefits of the action outweigh the cost? A financial manager at a company is trying to determine whether to issue new stocks or new bonds to cover the costs of a project the company is doing the next year. - ANSWER-Mak...

UNIT 2 What are the main services offered by financial institutions? - ANSWER-Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions (Correct! Financial institutions such as banks, insurance companies, and mutual fund companies provide these services.) What is the main objective of personal financial goals? - ANSWER-To maximize individual utility (Correct! You set goals and act to increase your satisfaction or happin...

In which way is accounting different from finance? Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on bringing in capital. Accounting is about budgeting, saving, and borrowing, while finance is about investing, forecasting, and lending. - ANSWER-Accounting is backward looking, while finance is focused on the future. What is the main question that both individuals and companies must consider when m...