Understanding Corporate Finance

3. measures the percentage of each sales dollar remaining after the firm has paid for it goods.
6. A legal provision that limits stockholders' liability for a corporation's debt to the amount they initially invested in the firm by purchasing stock.
8. An entity created by law.
10. Long term debt instrument used by business and government to raise large sums of money, generally from a diverse group of lenders.
11. The firm's chief accountant who is responsible for the firm's accounting activities such as corporate accounting, tax management, financial accounting, and cost accounting.
12. The magnification of risk and return through the use of fixed-cost financing, such as debt and preferred stock.
13. Measures the return earned on the common stockholders' investment in the firm.
14. Periodic distributions of cash to the stockholders of a firm.
16. The owners of a corporation, whose ownership, or equity takes the form of a common stock or, less frequently, preferred stock.
17. The firm's chief financial manager, who manages the firm's cash, oversees its pension plans and manages key risk.
19. A type of cross-sectional analysis in which the firm's ratio values are compared with those of a key competitor or with a group of competitors that it wishes to emulate.
20. In preparation of financial statements, recognizes revenue at the time of sale and recognizes expenses when they are incurred.

1. Evaluation of the firm's financial performance over time using financial ratio analysis.
2. The amount by which the sale price of an asset exceeds the asset's purchase price.
4. Income earned through the sale of a firm's goods or services.
5. provides a financial summary of the firm's operating results during a specified time.
7. A business owned by two or more people and operated for profit.
9. The science and art of managing money.
15. standards of conduct or moral judgement that apply to persons engaged in commerce.
18. The chance that actual outcome may differ from those expected.