Liamxavier

Assests - -what the company owns(resources of a company): cash accounts receivable land equipment patent rights -Liabilities - -what the company owes: notes payable accounts payable salaries payable long-term debt -General areas of accounting the course relates too: - -financial statement preparation and reporting financial statement auditing and compliance loosely relates to: internal controls auditing and compliance -financial accountant - -hired by a firm to prepare financ...

Income Sources - -1. Earned - Wages (Most Taxed) 2. Portfolio - Stocks/Bonds 3. Passive - Real Estate (Least Taxed) -Real Estate Types - -1. Owner Occupancy - Live in (Less Risk) 2. Investment - Income 3. Speculation - Appreciation (More Risk) -Appraisal Profession - -1. The Appraisal Foundation (TAF) 2. Appraisal Qualifications Board (AQB) 3. Appraisal Standards Board (ASB) -Professional Designations of Appraisers - -MAI - Commercial SRA - Residential AI-GRS - Appraisal Revi...

Capital Structure - -The combination of debt and equity used to finance a company's assets and operations. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. Usually, a company that is heavily financed by debt has a...

A key difference between principles and theories is that: A)principles are based on data, whereas theories are based on intuitions. B) principles can be applied to a variety of different situations, whereas theories are specific to only one phenomenon. C) principles tend to be fairly stable over time, whereas theories are expanded and modified based on new research. D)principles provide possible explanations for learning or development, whereas theories simply identify important factors. - -...

capital budgeting - -the process of planning and managing a firm's long-term investments -capital structure - -the mixture of debt and equity maintained by a firm -working capital - -a firm's short term assets and liabilities -sole proprietorship - -a business owned by a single individual -partnership - -a business formed by two or more individuals or entities -corporation - -a business created as a distinct legal entity owned by one or more individuals or entities

capital budgeting - -the process of planning and managing a firm's long-term investments -capital structure - -the mixture of debt and equity maintained by a firm -working capital - -a firm's short term assets and liabilities -sole proprietorship - -a business owned by a single individual -partnership - -a business formed by two or more individuals or entities -corporation - -a business created as a distinct legal entity owned by one or more individuals or entities -agency pr...

Purpose of Financial Accounting - -Provide useful financial information to capital providers (investors and creditors) in making decisions -Cash Basis Accounting - -Difference between cash receipts and cash disbursements from providing goods and services= Net Operating Cash Flow -Short periods of time... - -Operating cash flows may not be an accurate predictor of future operating cash flows, sometimes a company pays or receives cash in one period that relates to performance in multiple per...

The Four Basic Areas of Finance are: - -1. Corporate Finance 2. Investments 3. Financial Markets and Institutions 4. International Finance -What is the focus of corporate finance (3 basic issues)? - -1. What long-term investments should a firm take on? 2. Where will you get the long-term financing to pay for your investment? 3. How will you manage your everyday financial activities such as collecting from customers and paying suppliers? -Capital Budgeting - -The process of planning an...

Capital Budgeting - -the process of planning and managing a firms long term investments -size -time -risk -capital structure - -mixture of firms long term debt and equity the firm uses to finance it's operations -working capital - -deals w/ a firms short term assets (inventory) and short term liability (money owed to suppliers). managing this is a day to day activity that ensures the firm has sufficient resources to continue operations and avoid costly interruptions -agency prob...

capital budgeting process - -the process of identifying and evaluating capital projects (projects where the cash flow to the firm will be received over a period longer than one year) -4 administrative steps of capital budgeting process - -1. idea generation 2. analyzing project proposals (decision to accept/reject) 3. create firm-wide capital budget 4. monitoring decisions and conducting post-audit -5 key principles of capital budgeting process - -1. decisions based on cash flows, not a...