Financal Management

Financal Management

  • Submitted By: leeshab83
  • Date Submitted: 08/22/2011 4:28 PM
  • Category: Business
  • Words: 8581
  • Page: 35
  • Views: 596

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Accelerated Depreciation
Method of depreciation that results in higher depreciation charges in the first year and gradually declining charges over the life of the asset.
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Accounting Rate of Return
A rate of return based on accounting numbers such as average net income and the average book value of an investment.
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Accounts Receivable Turnover
A measure of the rapidity of conversion of accounts receivable into cash; calculated by dividing revenue by average accounts receivable.
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Accumulated Earnings Tax
A tax designed to prevent corporations from accumulating earnings in order to avoid double taxation. The tax can be avoided by showing a reasonable need for accumulating earnings.
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Acid-Test Ratio
Ratio of quick assets to total liabilities; calculated by dividing current assets minus inventory and prepaid assets by total current liabilities. Also called quick ratio.
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Activity Ratios
Ratios that reflect management’s ability to use the property’s assets.
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Adjusted Net Income Approach
An indirect method of cash budgeting that determines cash flow by adjusting net income to a strictly cash basis.
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Adjusted Present Value (APV) Approach
An approach to NPV estimation that is used when the leverage ratio is not held constant, as is true in the case of a mortgage.
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After-Tax Operating Cash Flow (OCF)
A project’s after-tax operating income plus its depreciation tax shield.
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Aging of Accounts Receivable
A review of the accounts receivable by days outstanding, to...

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