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Definition of Statement-of-cash-flows method
A method of cash budgeting that is organized along the lines of the statement of cash flows.
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 method of constructing a replicating portfolio in which the manager purchases a
The value of assets that can be converted into cash immediately, as reported by a company. Usually
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its
Purchase of a security and simultaneous sale of a future, with the balance being financed
The value of assets that can be converted into cash immediately, as reported by a
The actual physical commodity, as distinguished from a futures contract.
The length of time between a firm's purchase of inventory and the receipt of cash
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
In general, the time between cash disbursement and cash collection. In net working capital
An agreement to invest cash in a project to the extent required to cover any cash
The provision of some futures contracts that requires not delivery of underlying assets but
An incentive offered to purchasers of a firm's product for payment within a specified time
A dividend paid in cash to a company's shareholders. The amount is normally based on
A short-term security that is sufficiently liquid that it may be considered the financial
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow per common share
cash flow from operations minus preferred stock dividends, divided by the
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Also called spot markets, these are markets that involve the immediate delivery of a security
A public equity issue that is sold to all interested investors.
The proportion of a firm's assets held as cash.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
Temporary investments of currently excess cash in short-term, high-quality
An amount the insurance company will pay if the policyholder ends a whole life
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.
An annual statement filed by a life insurance company in each state where it does
Current rate method
Under this currency translation method, all foreign currency balance-sheet and income
Direct estimate method
A method of cash budgeting based on detailed estimates of cash receipts and cash
Discounted cash flow (DCF)
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.
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
General cash offer
A public offering made to investors at large.
Income statement (statement of operations)
A statement showing the revenues, expenses, and income (the
Incremental cash flows
Difference between the firm's cash flows with and without a project.
A firm's cash balance as reported in its financial statements. Also called book cash.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.
The practice of making a charge in the income account equivalent to the tax savings
Notes to the financial statements
A detailed set of notes immediately following the financial statements in
A statement published by an issuer of a new municipal security describing itself and the issue
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Pro forma financial statements
Financial statements as adjusted to reflect a projected or planned transaction.
Pro forma statement
A financial statement showing the forecast or projected operating results and balance
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 legal document that is filed with the SEC to register securities for public offering.
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
Billing method in which the sales for a period such as a month (for which a customer also
Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a
Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in
Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently
Symmetric cash matching
An extension of cash flow matching that allows for the short-term borrowing of
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the
Under this currency translation method, the choice of exchange rate depends on the
Wanted for cash
A statement displayed on market tickers indicating that a bidder will pay cash for same day
CASH AND CASH EQUIVALENTS
The balance in a company’s checking account(s) plus short-term or temporary investments (sometimes called “marketable securities”), which are highly liquid.
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.
An accounting statement that summarizes information about a company in the following format:
A method of accounting in which profit is calculated as the difference between income
The amount of cash expended.
Cash Flow statement
A financial report that shows the movement in cash for a business during an accounting period.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
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.
Financial reports or statements
The Profit and Loss account, Balance Sheet and cash Flow statement of a business.
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
Amounts held in currency and coin (commonly referred to as petty cash) and amounts on deposit in financial institutions.
Cash receipts journal
A journal used to record the transactions that result in a debit to cash.
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.
One of the basic financial statements; it lists the revenue and expense accounts of the company.
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.
The amount of currency and coin that a company keeps on hand to pay for small purchases and expenses.
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.
Statement Retained Earnings
One of the basic financial statements; it takes the beginning balance of retained earnings and adds net income, then subtracts dividends. The statement of Retained Earnings is prepared for a specified period of time.
cash burn rate
A relatively recent term that refers to how fast a business
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
statement of financial condition
See balance sheet.
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