Understanding Finance

2. Creditors’ claims on a firm, which are the financial obligations of the business
6. A financial statement which is a summary of the cash inflows (sources) and cash outflows (uses) during a specified accounting period
7. Legal structure where the owners are only liable for the amount of money they have put into the company
9. Value today of a savings amount or investment
11. An interest earned only on the investment’s principal
12. A statement of a company’s financial position as of a particular date, usually at the end of a quarter or year
13. Process in which the firms distributes additional shares for every share owned
14. Fixed series of payments made at equal intervals over a set period of time
16. An equity security that represents ownership shares in a corporation
18. Value of a savings amount or an investment at a specified time or date in the future
19. Increase in a currency’s value

1. A legal entity created under the law with an unending life and limited financial liability to its owners
3. A financial statement which reports the revenues generated and expenses incurred by the firm over an accounting period
4. An equity security that has a preference, or senior claim over common stock
5. A form of business organization that exists when two or more persons own a business operated for profit
8. The standard by which currencies of major countries are convertible into gold at fixed exchange rates
10. A system in which individual currencies would be tied to gold through the U.S. dollar via fixed, or pegged
15. An interest involves earning interest on interest in addition to interest on the principal
17. Decrease in a currency’s value