Question

Identify the definition

____ Individual retirement arrangements in which qualified contributions are tax deductible and income and capital gains on investments within the account are not taxed until money is withdrawn after age 59 1/2.

____ Individual retirement arrangements in which contributions are not tax deductible and income but the future income and capital gains within these accounts are not taxed if the money is withdrawn after age 59 1/2.

____ Ordinary corporate operating losses can be carried forward indefinitely to offset taxable income in a given year.

____ Indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future.

____ Measures the firm’s ability to pay-off short-term obligations without relying on the sale of inventories.

____ Indicates how many times inventory turned over during the year.

____ Indicates the average length of time the firm must wait after making a sale before it receives cash.

____ Measures how effectively the firm uses its plant and equipment.

____ Measure of the firm’s ability to meet its annual interest payments.

____ Measures EBIT per dollar of sales.

____ Measures net income per dollar of sales.

____ Measures the rate of return on the firm’s assets.

____ Measures the rate of return on common stockholder’s investment.

____ Shows the dollar amount investors will pay for $1 of current earnings.

____ Process of comparing a particular company with a subset of top competitors in its industry.

____ Used to estimate the likelihood of improvement or deterioration in a firm’s financialcondition.

____ Contains basic financial statements as well as management’s analysis of the firm’s past operations and future prospects.

____ Statement of the firm’s financial position at a specific point in time.

____ Represents the amount that stockholders paid the company when shares were purchased and the amount of earnings the company has retained since its origination.

____ Represent the cumulative total of all earnings kept by the company during its life.

____ Current assets.

____ Current assets minus current liabilities.

____ Operating current assets minus operating current liabilities.

____ Summarizes a firm’s revenues, expenses, and profits during a reporting period.

____ Earnings from operations before interest and taxes.

____ Charge to reflect cost of assets depleted in production process.

____ Represents a decline in value of intangible assets.

____ Shows how items that affect the balance sheet and income statement affect the firm’s cash flows.

____ Shows by how much a firm’s equity changed during the year and why this change occurred.

Answer 1

1. Traditional IRA

2. Roth IRA

3. Carry Forward and Set-Off of Losses

4. Current Ratio

5. Liquidity Ratios

6. Inventory Turnover Ratio

7. Days Sales Outstanding Ratio

8. Fixed Asset Turnover Ratio

9. Times Interest Earned Ratio

10. EBITDA (earnings before interest, taxes, depreciation and amortization) margin

11. Profit Margin

12. Return on Assets (ROA)

13. Return on Equity (ROE)

14. Price- Earning (P/E) ratio

15. Competitive Benchmarking

16. Trend Analysis

17. Annual Report

18. Balance Sheet

19. Stockholder's Equity

20. Retained Earnings

21. Current Assets

22. Working Capital

23. Operating Working Capital

24. Income Statement

25. EBIT

26. Depreciation

27. Amortization

28. Cash Flow Statement

29. Statement of Stockholder's Equity