Define each of the following terms: a. Annual report; balance sheet; income statement b. Common stockholders equity,
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Define each of the following terms:
a. Annual report; balance sheet; income statement
b. Common stockholders’ equity, or net worth; retained earnings
c. Statement of retained earnings; statement of cash flows
d. Depreciation; amortization; EBITDA
e. Operating current assets; operating current liabilities; net operating working capital; total net operating capital
f. Accounting profit; net cash flow; NOPAT; free cash flow
g. Market Value Added; Economic Value Added
h. Progressive tax; taxable income; marginal and average tax rates
i. Capital gain or loss; tax loss carry-back and carry-forward
j. Improper accumulation; S corporation
DepreciationDepreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing...
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Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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