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AR ADV SS UNIT 8
Arkansas Advanced Spreadsheets Unit 8-Developing a Financial Analysis
Question | Answer |
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Amortization schedule | A file with details about each loan payment, specifying how much of the payment is devoted toward interest and how much toward repaying the principal |
Balance sheet | A file that shows what the company owns and how its assets are financed |
Cash flow | The movement of cash assets into or out of an account |
Cash inflow | Cash coming into a business from revenue |
Cash outflow | Cash paid out of a business |
Cost of goods sold | Any costs directly related to production of a tangible item |
Declining balance depreciation | Depreciation of an asset by a constant percentage each year rather than a constant amount |
Dependent cell | A cell whose value depends on the value of other cells |
Depreciation | The process of allocating the original cost of the investment over the years of use |
Discount rate | Time value of money, quoted as a percentage to indicate the value of future dollars |
Error indicator | A green triangle in the upper-left corner of a cell that contains an error or potential error |
Extrapolate | To calculate a series of values from a starting point without a defined ending point |
FV function | The financial function to calculate the future value of an investment or loan |
Gross profit | The difference between the company's sales revenue and the cost of goods sold |
Growth trend | When values change not by a constant percentage; when plotted, a growth trend appears as a curve with the greatest increases occurring near the end of the series |
Income statement | A file that shows how much money a business makes or losses over a specified period of time |
Internal rate or return (IRR) | The point at which the net present value of an investment equals zero |
Interpolate | To fill in missing values when you know the beginning and the ending values in a series and the series trend |
Linear trend | When values change by a constant amount; when plotted, a linear trend appears as a straight line |
Negative cash flow | The movement of cash assets out of an account |
Net income | Income after all expenses and taxes have been paid |
Net present value | The current value of all the cash inflows and outflows in an investment adjusted by the time value of money |
NPER function | The financial function to calculate the number of payment periods in an investment or loan |
Payback period | The length of time required for an investment to recover its initial cost |
PMT function | The financial function to calculate the amount paid into an investment or loan during each payment period |
Positive cash flow | The movement of cash assets into an account, also called cash inflow |
Precedent cell | A cell whose value is used to calculate the active cell's value |
Profit and loss statement | A file that shows how much money a business makes or losses over a specified period of time |
PV function | The financial function to calculate the present value of an investment or loan |
Tangible asset | A long lasting material asset not intended for sale, such as equipment, land, buildings and delivery trucks |
RATE function | The financial function to calculate the interest rate charged or received during each payment period |
Rate of return | The time value of money, also known as the discount rate |
Risk | The possibility that an entire transaction will fail, resulting in a loss of the initial investment |
Time value of money | The assumption that money received today is worth more than the same amount received later |
Tracer arrow | An arrow that provides visual clues to the relationship between two cells by pointing from the precedent cell to the dependent cell |
Salvage value | The value of an asset at the end of its useful life |
Straight-Line Depreciation | Depreciation of an asset by equal amounts each year of its lifetime until it reaches the salvage value |