Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: business, investment, inventory control, tax advisor, financial advisor, accounting, money, payroll,
Also see related: homes, financing, real estate, home insurance, homebuyer, condo, home financing, homebuying, property,
Definition of high-low method
a technique used to determine the fixed
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in today’s dollars of cash flows that occur in different time periods.
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen
A method of constructing a replicating portfolio in which the manager purchases a
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Net income plus depreciation.
The number of times that financial obligations (for interest, principal payments,
A firm's net cash inflow resulting directly from its regular operations
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow from operations minus preferred stock dividends, divided by the
Line depicting the operating activities and cash flows for a firm over a particular period.
The point below which the firm will need either to obtain additional financing
Under this currency translation method, all foreign currency balance-sheet and income
A method of cash budgeting based on detailed estimates of cash receipts and cash
Future cash flows multiplied by discount factors to obtain present values.
Discretionary cash flow
Cash flow that is available after the funding of all positive NPV capital investment
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
Expected future cash flows
Projected future cash flows associated with an asset of decision.
Government bonds that are acceptable at par in payment of federal estate taxes when owned by
An account for the investment credit to show all income statement benefits of the credit
The practice of reporting to shareholders using straight-line depreciation and
Free cash flows
Cash not required for operations or for reinvestment. Often defined as earnings before
A contract that obligates a purchaser of a project's output to make cash
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Highly leveraged transaction (HLT)
Bank loan to a highly leveraged firm.
Incremental cash flows
Difference between the firm's cash flows with and without a project.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
The practice of making a charge in the income account equivalent to the tax savings
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Related: retention rate.
Adjustment mechanism under the classical gold standard whereby
An agreement by the loan purchaser to allow the monthly loan quota to be
Accounting for an acquisition using market value for the consolidation of the two entities'
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
A method of allocating the purchase price for the acquisition of another firm among the
Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of the
Simple compound growth method
A method of calculating the growth rate by relating the terminal value to
Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a
A method of cash budgeting that is organized along the lines of the statement of cash flows.
Under this currency translation method, the choice of exchange rate depends on the
Stock that has fallen out of favor with investors; tends to have a low P/E (price to earnings ratio).
A statement that shows where a company’s cash came from and where it went for a period of time, such as a year.
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
CASH FLOWS FROM INVESTING ACTIVITIES
A section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery.
CASH FLOWS FROM OPERATIONS
A section on the cash-flow Stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business.
Cash Flow statement
A financial report that shows the movement in cash for a business during an accounting period.
Discounted cash flow (DCF)
A method of investment appraisal that discounts future cash flows to present value using a discount rate, which is the risk-adjusted cost of capital.
Allowance for doubtful accounts
A contra account related to accounts receivable that represents the amounts that the company expects will not be collected.
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
A method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
Statement of Cash Flows
One of the basic financial statements; it lists the cash inflows and cash outflows of the company, grouped into the categories of operating activities, financing activities, and investing activities. The Statement of Cash Flows is prepared for a specified period of time.
An obvious but at the same time elusive term that refers to cash
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
statement of cash flows
One of the three primary financial statements
discounted cash flow (DCF)
Refers to a capital investment analysis technique
free cash flow
Generally speaking, this term refers to cash flow from
negative cash flow
The cash flow from the operating activities of a business
operating cash flow
See cash flow from operating activities.
Free Cash Flow
The funds available for distribution to the capital providers of the
Operating Cash Flow
Income available after the payment of taxes, plus the value of the
a process of service department cost allocation
the receipt or disbursement of cash; when related
a service department cost allocation approach
dividend growth method
a method of computing the cost
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
judgmental method (of risk adjustment)
an informal method of adjusting for risk that allows the decision maker
method of least squares
see least squares regression analysis
method of neglect
a method of treating spoiled units in the
modified FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per
net present value method
a process that uses the discounted
operations flow document
a document listing all operations
risk-adjusted discount rate method
a formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk
an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems
a high-performance, data-driven approach to analyzing and solving the root causes of business problems
standard quantity allowed
the quantity of input (in hours or some other cost driver measurement) required at standard for the output actually achieved for the period
a process of service department cost allocation
strict FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per equivalent unit and, in transferring units from a department, keeps the
weighted average method (of process costing)
the method of cost assignment that computes an average cost per
Bootstrapping, bootstrap method
An arithmetic method for backing an
Cash received and paid over time.
A financial chart usually used to plot the high, low,
Allowance for bad debts
An offset to the accounts receivable balance, against which
Discounted cash flow
A technique that determines the present value of future cash
First in, first-out costing method (FIFO)
A process costing methodology that assigns the earliest
Lower of cost or market
An accounting valuation rule that is used to reduce the
Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
A capital budgeting analysis method that calculates the amount of
An accounting method used to combine the financial statements of
A reduction in a price that is allowed by the seller, due to a problem
Statement of cash flows
Part of the financial statements; it summarizes an entity’s cash
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.