principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory. You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial
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Chapter 01 Financial Statements and Business Decisions True / False Questions 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. True False 2. Assets on the balance sheet are recorded at market value or replacement cost. True False 3. In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other
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PRINCIPLES OF ACCOUNTING Higher 2 (2016) (Syllabus 9755) CONTENTS Page INTRODUCTION 2 AIMS 2 ASSESSMENT OBJECTIVES 2 SPECIFICATION GRID 2 SCHEME OF ASSESSMENT 3 SYLLABUS OUTLINE 3 SYLLABUS CONTENT 5 SUMMARY OF COMMONLY USED RATIOS 15 RESOURCES 16 Singapore Examinations and Assessment Board MOE & UCLES 2014 1 9755 H2 PRINCIPLES OF ACCOUNTING (2016) INTRODUCTION Principles of Accounting aims to provide candidates with a foundation course in accounting at a breadth and depth
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financial products and services. • A financial system encourages accumulated savings which are then available for investment within an economy. • Financial instruments incorporate attributes of risk, return (yield), liquidity and time–pattern of cash flows. Savers are able to satisfy their own personal preferences by choosing various combinations of these attributes. • By encouraging savings, and allocating savings to the most efficient users, the financial system has an important role to play in
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A rock band plans to visit 15 cities all over the world in one year. They will visit 3 of these 15 cities in January. The number of possible combinations of venues for January is closest to: A. 455 B. 2,730 C. 45 Answer: A The order in which the three cities are visited during January is not important so we use the combinations formula. © Élan Guides 2010 15 C3 15! = 455 (15 3)!(3!) 4. Which of the following tests is most likely used when testing the variance of a single normally
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Lecture Handouts for Chapter 5 Chapter 5 is covered in lectures 31 and 32. Risk and Return The return from an investment is the change in market price, plus any cash payments received due to ownership, divided by the beginning price. The risk of a security can be viewed as the variability of returns from those that are expected. Measurement of Risk The expected return is simply a weighted average of the possible returns, with the weights being the probabilities of occurrence. The conventional
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Accounting Information 1. External Information Users—those not directly involved with running the company. Examples: shareholders (investors), lenders, customers, suppliers, regulators, lawyers, brokers, the press etc. a. Financial Accounting—area of accounting aimed at serving external users by providing them with generalpurpose financial statements. b. General-Purpose Financial Statement—statements that have broad range of purposes which external users rely on. 2. Internal Information Users—those directly
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anything that is related to money in the market. The purpose of finance is to aid any company with an ability to manage money. 2. Efficient Market – the level in where the stock prices will reflect all of the available and significant information. The three different levels of market efficiency are ; weak, semi-strong, and strong. This level of market efficiency can suggest that stock prices are directly connected and will respond to the level of relevant information. 3. Primary Market – This market
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the statement or answers the question. ____ 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds 2. On the statement of cash flows, the cash flows from operating activities section would include: a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts
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Statements of cash flows for the years ended 31 March 2012 £m Cash flows from operating activities Profit, after interest, before taxation Adjustments for: Depreciation Interest expense Increase in inventories Increase in trade receivables Increase in trade payables Cash generated from operations Interest paid Taxation paid Dividend paid Net cash from/(used in) operating activities Cash flows from investing activities Payments to acquire property, plant and equipment Net cash used in investing activities
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