英文版 MBA Financial Analysis Glossary.docx

1、英文版 MBA Financial Analysis GlossaryAAccelerated depreciation A method of depreciation that results in greater depreciation expenses in the earlier years of an assets life. Accounting profit The difference between revenues and expenses of a business enterprise, determined according to a set of accoun

2、ting principles (e.g., in the U.S., accounting profit is determined according to generally accepted accounting principles, GAAP). Accounts payable Amounts due to suppliers for goods or services purchased on credit. Accounts receivable Amounts due from customers arising from the extension of trade cr

3、edit. Accounts receivable turnover The ratio of net credit sales to accounts receivables; a measure of the number of times in a period that credit sales have been created and collected. Accumulated depreciation The sum of depreciation taken for physical assets in the firms possession. Activity ratio

4、 A ratio that relates information on a firms ability to manage its resources efficiently. Addition paid-in capital An amount paid for shares of stock in excess of the par or stated value of the shares. Add-on interest An interest arrangement in which interest is added to the loaned amount, and the p

5、rincipal (amount borrowed) and interest are repaid in equal, periodic payments. Adjustable rate mortgage A loan, secured by real estate, with an interest rate that varies according to some other, specified rate. Agency relationship A relation between two parties in which one party (the agent) is aut

6、horized by the other party (the principal) to make decisions or take actions for the benefit of the authorizing party. Agent A person authorized by another person (the principal) to act for him. Amortized A present value that has been transformed into an equivalent series of cash flows considering t

7、he time value of money. Annualized rate A rate of interest stated on an annual basis (i.e., as a rate per year). Annual percentage rate, APR A standard for reporting interest rates, in accordance to the Truth in Lending Act, that results in a simplified manner of annualizing and comparing rates. The

8、 interest rate per compound period is multiplied by the number of compound periods in a year, producing an annualized rate of interest. Annual percentage yield, APY An annualized rate that considers the effects of compounding with the year. See also EAR. Annuity A series of even cash flows that occu

9、r at even intervals of time. Annuity due A series of periodic, even cash flows in which the first cash flow occurs today. APR See annual percentage rate. Arbitrage The process of buying and selling identical assets in different markets at different prices until the asset have the same price everywhe

10、re. Arbitrage Pricing Model A model of asset prices that states that the expected return on an asset is the sum of the risk free rate and the expected return associated with unanticipated factors. Arbitrage Pricing Theory An asset pricing theory developed by Stephen Ross that is based on the idea th

11、at identical assets in different markets should be priced identically. Articles of incorporation A document that is filed with the state by a business entity that seeks incorporation; the document describes the business and the rights and responsibilities of its owners. Asset Property, either real,

12、personal, tangible, or intangible. Asset-backed security A security created by pooling together assets (e.g., home mortgages, credit card accounts receivable) and selling interests in these assets. Assumable mortgage A mortgage that allows the borrower to sell the property to another party and this

13、party assumes the debt obligation. Average tax rate The average rate of tax on a dollar of taxable income, calculated as the ratio of taxes to taxable income. The tax rate paid, on average, per dollar of taxable income. BBalance sheet A statement of assets, liabilities, and net worth at a point in t

14、ime. Also referred to as the statement of financial position. Basic earnings per share (Basic EPS) Net income, less preferred dividends, divided by the number of shares of stock outstanding. Basic earning power ratio The ratio of a firms operating income to its total assets; a measure of the return

15、on a firms investment in assets. Beta A measure of the sensitivity of an assets returns to the changes in the returns on the market portfolio. Blind trust A trust in which the grantor has no influence or information regarding the decisions of the trustee. Board of directors The governing body of a c

16、orporation that is elected by and makes decisions in the interest of the corporations owners. Bond An agreement between a lender (the issuer) and a borrower(the investor). Book value of equity The value of the ownership interest in a company according to the accounting conventions applied; the sum o

17、f the par value of equity, additional paid in capital, retained earnings, less treasury stock. Book value of equity per share The ratio of the book value of shareholders equity to the number of shares of stock outstanding. Bond A debt obligation in which the borrower promises to repay the amount of

18、the borrowed loan at a specified point of time in the future, plus (if agreed upon) pay interest on the borrowed funds. Bonding costs Costs incurred by an agent in an agency relationship to ensure that he/she will act in the best intersts of the principals. Bonds and notes Promises to repay borrowed

19、 funds and to make periodic interest payments. Budget A written plan that organizes actual and projected cash inflows and outflows over a period of time. Budgeting The process of organizing, projecting, monitoring and controlling future cash inflows and outflows. Business cycle Economic activity tha

20、t spans temporary phases of activity of expansion, recession and recovery, producing a wave-like pattern of economic activity. Business risk The uncertainty associated with the operating cash flows of business enterprise. Bylaws The rules of governance of an organization; for a corporation, the byla

21、ws (along with the articles of incorporation) become part of its corporate charter. CCall risk The uncertainty regarding whether a callable security (e.g., callable bond) will be called (i.e., purchased) from the investor by the issuer. Capital A firms resources; funds raised from long-term sources,

22、 such as bonds and stocks. Capital asset pricing model, CAPM A theory of how assets are priced, where the expected return on an asset is the sum of the risk free rate of interest and a premium for bearing market risk. Capital budgeting The process of identifying and selecting investments in long-liv

23、ed assets. Capital gain A gain (profit) on the sale of an asset used in business, which may receive preferential tax treatment through an exclusion of a portion of the gain from taxation or simply from a lower tax rate. Capitalization rate The discount rate that translates a future series of cash fl

24、ows into a present value. Capital lease A rental obligation that is considered a long-term debt. Capital market line The preferred set of portfolios for risk averse investors that are a combination of the optimal portfolio (i.e., market portfolio) and either borrowing or lending opportunities. Capit

25、al rationing A situation in which there is a limit on the amount of spending on long-term investment projects. Capital recovery period See payback period Cash flow from financing activities Cash flows arising from the issuance, retirement, or repurchase of debt and equity securities. Cash flow from

26、investing activities Cash flows related to the purchase or sale of physical assets. Cash flow from operating activities Cash flows of the firm arising from day-to-day operations. Cash flow interest coverage ratio The ratio of a firms cash flow available to pay interest to its interest expense; a mea

27、sure of a firms use of financial leverage. Cash flow risk The uncertainty associated with the amount and timing of future cash flows from an investment. Cash flow statement A summary of cash inflows and outflows. For an individual using the cash basis of accounting, this statement is a summary of in

28、come (i.e., cash inflows) and expenses (i.e., cash outflows) during a period of time (e.g., a year). Also referred to as the income and expenditures statement and the income statement. Certified Financial Planner Board A non-profit professional regulatory organization that regulates financial planne

29、rs by means of the trademark law, licensing individuals who meet its certification requirements to use the registered CFP marks. Commercial bank A corporation that is chartered under federal and state regulations to provide financial services to both individual and business customers. Common stock T

30、he residual (last-in-line) ownership of a corporation, represented by shares of stock. Common-size analysis The study of financial statements that have been restated such that each item is reported as a percentage of a base, where the base for the balance sheet is total assets and the base for the i

31、ncome statement is sales revenues. Community property Property owned by both parties to a marriage. In states with community property laws, any property acquired after marriage becomes community property. Compounding Translating a value today into a future value, considering that interest is earned

32、on interest. Compound interest The payment of interest both on the principal amount and accumulated, earned interest. Consensus forecast A measure of the forecasts about a particular item, such as gross domestic product or a companys earnings; in the case of analysts earnings forecasts, the average of the available forecasts is often used as the consensus forecast. Consumer credit Debt that is created