Match the Term with Its Definition

question 98

Essay

Match the term with its definition.
a.Statement of financial position
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Equity
g.Retained earnings
h.Working capital cycle
-A distribution of a business's profits to the owners.

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Definitions:

Excel Spreadsheets

A software program used for data organization, analysis, and storage in tabular form.

Profitability Index

A financial tool used to evaluate the attractiveness of an investment, calculated as the present value of future cash flows divided by the initial investment.

Net Present Value

A valuation method that calculates the worth of a future stream of cash flows by discounting them back to their present value.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculating an annual growth rate.