Business Strategy and Performance

Assets = The tabulating and bookkeeping of the capital resources of a particular firm Cost effective management = Refers to the strategic and efficient utilization of resources to achieve organizational goals while minimizing expenses. Balance sheet = Serves as a snapshot of the current net worth of a particular firm at a given moment in time. Accounting = Bank deposit balances, any petty cash funds, and cash equivalents

People = A company that inspires its employees and creates a strong, cooperative morale will benefit in the long run. Technology = Effective application of the newest technical advances makes a business more efficient. International strategy = Only the company that can successfully implement an international strategy can fully compete in the new global community. RETURN = This is the lifeblood of a well-run company, without it, sooner or later, the company will die.

Cash = Bank deposit balances, any petty cash funds, and cash equivalents Accounts receivable = The amount due from customers that has not yet been collected Inventory = The generally accepted method of valuation of inventory is the lower of cost or market (LCM) Prepaid expense = Payments made by the company, in advance of the benefits that will be received, by year's end

<p>Future outlook = Examine principal determinants of company operating and financial performance, key points of leverage in the future. People = A company that inspires its employees and creates a strong, cooperative morale will benefit in the long run. RETURN = This is the lifeblood of a well-run company, without it, sooner or later, the company will die. Technology = Effective application of the newest technical advances makes a business more efficient.</p> Signup and view all the answers

<p>Assets = The tabulating and bookkeeping of the capital resources of a particular firm Accounting = Bank deposit balances, any petty cash funds, and cash equivalents Inventory = The amount due from customers that has not yet been collected Accounts receivable = The generally accepted method of valuation of inventory is the lower of cost or market (LCM)</p> Signup and view all the answers

<p>The big three = The financial statements of a business enterprise are essentially their scribes the books. Operation = This characteristic reveals the inner workings of the company. Tools of the trade = Requires the working knowledge of certain important disciplines that are firmly footed in the mathematical and economic science. Asset = A strong balance sheet is a wonderful characteristic for a company in march of fame and fortune in the annals of great stocks.</p> Signup and view all the answers

<p>International strategy = Only the company that can successfully implement an international strategy can fully compete in the new global community. RETURN = This is the lifeblood of a well-run company, without it, sooner or later, the company will die. People = A company that inspires its employees and creates a strong, cooperative morale will benefit in the long run. Operation = This characteristic reveals the inner workings of the company.</p> Signup and view all the answers

<p>Prepaid expense = Payments made by the company, in advance of the benefits that will be received, by year's end. Cash = The amount due from customers that has not yet been collected Inventory = Bank deposit balances, any petty cash funds, and cash equivalents Accounts receivable = The generally accepted method of valuation of inventory is the lower of cost or market (LCM)</p> Signup and view all the answers

<p>Fixed Assets = Assets that cannot be converted into cash within a normal operating cycle Current Liabilities = Debts that fall due within 12 months (or one operating cycle) Revenue = The amount received by the company for rendering its services or selling its goods Retained Earnings = The amount of earnings, above the dividend payout, accumulated by the firm</p> Signup and view all the answers

<p>Liabilities = The next major portion of the balance sheet lists liabilities Stockholder's Equity = The total equity interest that all shareholders have in the company Fixed Assets = Assets that cannot be converted into cash within a normal operating cycle Income Statement = The balance sheet is the record of net worth for the firm</p> Signup and view all the answers

<p>Accrued Expenses = The amounts owed and not yet recorded on the books that are unpaid at the date of the balance sheet Income Tax Payable = The debt due to the Internal Revenue Service (IRS) or other taxing authorities but not yet paid Long-term Debt = Debts due beyond one year (or one operating cycle) Accounts Payable = Represents the amount the company owes to business creditors</p> Signup and view all the answers

<p>Revenue = The amount received by the company for rendering its services or selling its goods Cost of Goods Sold (COGS) = The primary cost expense in most manufacturing companies Operating Earnings = Earnings attributed to the activities of the company without any impact from the financing of its balance sheet Interest Expense = Amount that equals the cost of borrowing money</p> Signup and view all the answers

<p>EBITDA = Known as a measure of cash flow, for it factors out the non-cash charges included in depreciation and amortization expense Depreciation and Amortization Expense = The estimated amount that management expects to use in the future to replace its operating facilities Operating Earnings Before Depreciation = Earnings attributed to the activities of the company without any impact from the financing of its balance sheet Retained Earnings = The amount of earnings, above the dividend payout, accumulated by the firm</p> Signup and view all the answers

<p>Income Statement = The balance sheet is the record of net worth for the firm Balance Sheet = The record of net worth for the firm Current Assets = Assets that can be converted into cash within a normal operating cycle Fixed Assets = Assets that cannot be converted into cash within a normal operating cycle</p> Signup and view all the answers

<p>Cost of Goods Sold (COGS) = The primary cost expense in most manufacturing companies Operating Earnings Before Depreciation = Earnings attributed to the activities of the company without any impact from the financing of its balance sheet Interest Expense = Amount that equals the cost of borrowing money EBITDA = Known as a measure of cash flow, for it factors out the non-cash charges included in depreciation and amortization expense</p> Signup and view all the answers

<p>Long-term Debt = Debts due beyond one year (or one operating cycle) Stockholder's Equity = The total equity interest that all shareholders have in the company Current Liabilities = Debts that fall due within 12 months (or one operating cycle) Fixed Assets = Assets that cannot be converted into cash within a normal operating cycle</p> Signup and view all the answers