F2 Analysis of financial perfromance and position

26 flashcardspar Ella
Réviser ces flashcardsGratuit · répétition espacée · iPhone, Android, Mac et web

Toutes les cartes

1
Explain the creditor hierarchy
he creditor hierarchy is the order in which different groups of creditors (people or institutions owed money by a company) are paid if the company goes bankrupt or liquidates its assets. Typically, the order is:

Secured creditors: These have loans backed by company assets (like banks with a mortgage on property). They get paid first from the proceeds of those assets.
Unsecured creditors: These do not have specific assets as collateral. Examples include suppliers, contractors, or bondholders.
Subordinated creditors: These agree to be paid after other unsecured creditors; they take on more risk.
Shareholders/owners: They are last in line and only get paid if anything is left after all creditors are paid.
2
What are money market instruments?
Short-term financial instruments used for borrowing and lending, typically for durations of a year or less.
3
Name three examples of money market instruments
Certificates of deposit, commercial papers, and Treasury bills.
4
What distinguishes money market instruments from bonds?
Money market instruments are short-term, while bonds are long-term financial instruments.
5
Who typically issues certificates of deposit?
Private sector banks
6
What is a Treasury bill?
A short-term loan instrument issued by the government.
7
Over what period are bonds usually repaid?
Bonds are generally repaid over a longer period, such as three to five years.
8
What do investors receive when they hold bonds?
Interest payments during the holding period, with the principal repaid at maturity.
9
What is dividend cover?
Dividend cover indicates how many times a company’s earnings can cover its current level of dividend payments.
10
How is dividend cover calculated?
Divide Earnings Per Share (EPS) by dividends per share.
11
Why is dividend cover important for ordinary shareholders?
It shows how secure dividend payments are, as ordinary shareholders are not guaranteed dividends.
12
What does dividend yield represent?
The percentage return an investor can expect from a share, based on its market price and dividend
13
Which type of investor cares most about dividend yield?
Investors seeking short-term returns are more interested in high dividend yields.
14
What factor might make an investor focus less on dividend yield and more on another metric?
Interest in long-term growth may lead investors to focus on the P (Price/Earnings) ratio instead.
15
What does the P ratio (Price/Earnings ratio) tell you?
It provides insights into a company’s market confidence and outlook, not specifically its dividend policy.
16
What is the Gartner data analytics maturity model
17
What are descriptive analytics?
18
What are diagnostic analytics
19
What are Predictive analytics
20
What are prescriptive analytics
21
How does the quality of data limit the usefulness of comparing financial data
22
How does creative accounting limit the usefulness of comparing financial statements
23
What are the limitations of ratio analysis
24
What are the limitations of inter-segment comparisons
25
What are the limitations of international comparisons
26
What is the objective of financial reporting
Réviser les 26 cartes gratuitement

Plus de flashcards : Économie et gestion

Aggregate demand28 cartesÉconomie et gestion · Anglaisun étudiant OutLearnDSP Module 1-4 -- Cumulative Exam24 cartesÉconomie et gestion · AnglaisZackJChapter 11 Vocab - Marketing Management20 cartesÉconomie et gestion · Anglaisbevo612Aeronautical Decision Making14 cartesÉconomie et gestion · AnglaisSamuelTax10 cartesÉconomie et gestion · AnglaisEllaCalifornia Real Estate Exam208 cartesÉconomie et gestion · Anglaisun étudiant OutLearnBusiness Management Theme 3109 cartesÉconomie et gestion · AnglaisDsoboMarketing77 cartesÉconomie et gestion · AnglaisesmeeFIN 315 - Exam 260 cartesÉconomie et gestion · Anglaisse283Environmental Econ48 cartesÉconomie et gestion · AnglaisMrsRicchioMarketing Cours 240 cartesÉconomie et gestion · FrançaisCarolineBrands34 cartesÉconomie et gestion · Anglaisrikishakennedy

Tous les decks : Économie et gestion

Révise ces decks dans l’app

Gratuit sur iPhone, Android, Mac et le web. Ajoute n’importe quel deck à ton compte en un tap.

Télécharger dans l’App StoreDisponible sur Google Play
Réviser les 26 cartes gratuitement