Finance for Non-Finance Executives

Index

Accounting

rules, 5

definition of, 3

Accounting (Book) Rate of Return (ARR), 87–89, 91

Acid test ratio, 35

Alpha company, 90

Analyzing efficiency ratios, 32–34

Analyzing solvency ratios, 35–37

Annual report contents, 5

ARR. See Accounting (Book) Rate of Return (ARR)

ARR. See Average Rate of Return (ARR)

Assets = liabilities + owner’s equity, 6

Average Rate of Return (ARR), 87–89

Balance sheet, 6, 7, 9, 10, 11, 16–18, 21, 23, 27, 28, 32, 40, 58

Bankruptcy, 56

Bishops, 52

Budgets

and control, 63–64

matter, 55–56

requests, 42

types of, 57–63

Bundling, 78

Business-critical decision, 71, 72

Capital Asset Pricing Model (CAPM), 93–95

Capital

budgets, 57, 64

rationing, 95–97

Cash

budgets, 57

conversion cycle, 68

cash cycle, 67–69

flow statement, ...