Accounting - ANSThe device of recording, reporting, and summarizing beyond financial
statistics and transactions.
Accounts Receivable Turnover (AR Turnover) - ANSAn hobby ratio determined with the aid of
credit income divided via debts receivable.
Activity Ratios - ANSA class of ratios that degree how properly a business enterprise uses its
belongings to generate sales or cash, displaying the company's operational performance and
profitability.
Additional Funds Needed (AFN) - ANSAnother call for the discretionary financing needed or
external financing needed. It represents the extra financing wished given a company's
expectancies for future growth.
Affirmative Covenants - ANSA bond covenant that describes matters the company pledges itself
to do so one can protect bondholders.
Agency Costs - ANSCosts which are incurred while control does not act inside the exceptional
interest of shareholders.
Agency Problem - ANSWhen the agent (the management) does now not act within the fine
interest of the primary (the owners).
Aggressive Assets - ANSCompanies or securities with beta extra than 1.
Annual Percentage Rate - ANSThe annual interest fee that is charged for borrowing cash or that
is earned through funding.
Annuity - ANSA stream of cash flows of an identical quantity paid every consecutive length.
Annuity Due - ANSA series of identical bills made at the start of consecutive intervals.
Asset Pricing - ANSThe method of valuing property.
Auction Market - ANSA secondary market with a bodily vicinity and wherein fees are determined
through buyers' willingness to pay.
Average Collection Period (ACP) - ANSAn hobby ratio observed by the variety of days in a yr
(365) divided via AR turnover.
, Balance Sheet Forecasting - ANSUsing sales increase and the earnings forecast to assemble a
seasoned forma balance sheet to apprehend the destiny implications of the sources and makes
use of of price range.
Banks and Credit Unions - ANSReceive deposits and amplify loans to people and companies.
Benchmarking - ANSThe technique of completing a economic evaluation to compare a firm's
monetary overall performance to that of other similar companies.
Beta - ANSA variable that describes how the rate of a security varies with the market.
Bid-ask Spread - ANSThe distinction between the bid and ask charges that compensate the
professional for the hazard that he or she bears for willingness to offer liquidity.
Board of Directors - ANSA organization of people who jointly supervise the sports of an
employer.
Bond Indenture - ANSA criminal contract that governs the relationship among a company and
its bondholders.
Bondholders - ANSA person who loans a agency money by way of buying debt securities.
Business Finance - ANSAn vicinity of finance that deals with sources of funding, the capital
structure of organizations, the movements that managers take to increase the cost of the
company to its proprietors, and the gear and analysis used to allocate economic resources.
Cannibalization - ANSThe discount in sales of a corporation's personal products because of
introduction of another similar product.
Capital - ANSA financial asset that can be utilized by a company or character. Examples of
capital may be machinery or coins held by means of a firm.
Capital Asset Pricing Model (CAPM) - ANSA version used to decide the danger-return
relationship for an asset.
Capital Budgeting - ANSThe method of assessment and making plans for purchases of
long-time period property.
Capital Budgeting Criteria - ANSMetrics and calculations used to decide whether or not a
undertaking or asset will upload fee and be a worthwhile investment.
Capital Investment - ANSThe sum of money invested in a commercial enterprise to purchase
long-time period property to in addition its objective of maximizing owner wealth.
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