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Related Flashcards
Related Topics
Cards In This Set
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Amortisation
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Writing off over a period of an asset or a liability
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Depreciation
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Systematic allocation of the cost or revalued amount of a tangible non-current asset over its useful life
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Impairment
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Loss in value of an asset below its depreciated cost (e.g. spoilt inventory etc)
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Associate
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An entity over which an investor has significant influence and which is neither a subsidiary nor an interest in a joint venture
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Subsidiary
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A company which is controlled by a parent company
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Average Collection Period
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The average time in days that a company takes over to collect its accounts receivable
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Average Payment Period
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The average time in days that a company takes over to settle its accounts payable
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Big Bath
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The strategy of manipulating a company's income statement to make poor results look even worse. Implemented after a bad year to artificially enhance the earnings of the following year.
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Consolidated
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Refers to financial statements which include statements for a parent company and its subsidiaries
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Credit Risk
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The risks of a loss of principal due to the borrower's inability to repay a loan or meet a contractual obligation
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Currency Risk
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A form of risks arising from the change in price of one currency over another
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Current Ratio
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A popular financial ratio to test the company's liquidity by deriving the proportion of current assets available to cover current liabilities. Current Assets divided by Current Liabilities
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Dividend Cover
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The ratio between earnings per share and the ordinary dividend per share
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Fair Value
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The amount for which an asset could be exchanged or a liability sealed, between knowledgeable and willing parties at arm's length. Calculated before the addition or subtraction of any buying or selling costs
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Gearing/Leverage
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The relationship, measured in either balance sheet or income statement terms, between the funds provided to a company by equity holders and the funds provided by debt holders
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