10 Questions
It is a perspective that is summarized in a firm’s statement of cash flows.
ACCOUNTING
It is the length of time required for a company to convert cash invested in its
CASH CONVERSION CYCLE
It is an inventory management technique that divides inventory into three groups.
ABC
It is interest that is earned on a given deposit and becomes part of the principal at the end of a specified period.
COMPOUND
It is the primary ingredient in any financial valuation model.
CASHFLOW
It is the portion of the costs of fixed assets charged against annual revenues over time.
DEPRECIATION
It is a stream of equal periodic cash flows over a specified period.
ANNUITY
It involves the preparation of the firm’s cash budget
CASH PLANNING
It is the process of finding present values and the inverse of compound interest
DISCOUNTING
It is a perspective from which firms often focus on both operating and free cash flow.
FINANCIAL
Study Notes
Financial Concepts
- A firm's statement of cash flows is a perspective that summarizes the company's financial situation.
Inventory Management
- The technique of dividing inventory into three groups is an inventory management method.
Compound Interest
- Compound interest is the interest earned on a deposit that becomes part of the principal at the end of a specified period.
Financial Valuation
- The primary ingredient in any financial valuation model is the cost of capital.
Depreciation
- Depreciation is the portion of the costs of fixed assets charged against annual revenues over time.
Annuity
- An annuity is a stream of equal periodic cash flows over a specified period.
Cash Budgeting
- The cash budget is prepared by firms, which involves planning and managing a company's cash inflows and outflows.
Time Value of Money
- The process of finding present values and the inverse of compound interest is involved in understanding the time value of money.
Cash Flow Perspective
- Firms often focus on both operating and free cash flow in their financial planning and decision-making.
This quiz is about the ABC inventory classification method, which categorizes inventory into three groups based on their value and importance. Learn about this essential inventory management technique.
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