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Flashcard 1429091257612

Tags
#sister-miriam-joseph #trivium
Question
Even if one forgets many of the fact s once learned and related, the mind retains the vigor and perfection gained by its exercise upon them. It can do this, however, only by [...] with facts and ideas
Answer
grappling

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Even if one forgets many of the fact s once learned and related, the mind retains the vigor and perfection gained by its exercise upon them. It can do this, however, only by grappling with facts and ideas. Moreover, it is much easier to remember related ideas than unrelated ideas.

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Flashcard 1438378495244

Tags
#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
A firm can raise the funds it wants for all profitable projects simply by [...].
Answer
paying the required rate of return

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ximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by <span>paying the required rate of return.<span><body><html>

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Subject 2. Basic Principles of Capital Budgeting
In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. <span>Some project interactions: Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return. Learning Outcome Statements b. describe the basic principles of capital budgeting; c. explain how the evaluat







Flashcard 1438504324364

Tags
#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10 #subject-2-basic-principles-of-capital-budgeting
Question

Accounting profits are affected by some non-cash charges that are not cash flows such as [...]

Answer
depreciation

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ties create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are <span>a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. &#13

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Subject 2. Basic Principles of Capital Budgeting
d in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing. <span>Important capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which cannot be recovered regardless of whether a project is accepted or rejected. Since sunk costs are not increment costs, they should not be included in the capital budgeting analysis. For example, a small bookstore is considering opening a coffee shop within its store, which will generate an annual net cash outflow of $10,000 from selling coffee. That is, the coffee shop will always be losing money. In the previous year, the bookstore spent $5,000 to hire a consultant to perform an analysis. This $5,000 consulting fee is a sunk cost; whether the coffee shop is opened or not, the $5,000 is spent. Incremental cash flow is the net cash flow attributable to an investment project. It represents the change in the firm's total cash flow that occurs as a direct result of accepting the project. Forget sunk costs. Subtract opportunity costs. Consider side effects on other parts of the firm: externalities and cannibalization. Recognize the investment and recovery of net working capital. Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow. Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can be either positive or negative: Positive externalities create benefits for other parts of the firm. For example, the coffee shop may generate some additional customers for the bookstore (who otherwise may not buy books there). Future cash flows generated by positive externalities occur with the project and do not occur without the project, so they are incremental. Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows. Conventional versus non-conventional cash flows. A conventional cash flow pattern is one with an initial outflow followed by a series of inflows. In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. Some project interactions: Indepe







Flashcard 1439242521868

Tags
#eximbank #key-features-of-direct-loans #octopus #usa
Question
Direct loans are best used when the buyer insists on [...]
Answer
a fixed rate.

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Direct loans are best used when the buyer insists on a fixed rate.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.







Flashcard 1442642529548

Tags
#cfa-level-1 #factors-that-determine-market-structures #microeconomics #reading-16-the-firm-and-market-structures #section-2-analysis-of-mkt-structures #study-session-4
Question
Monopoly and oligopoly markets offer [...]; monopolistic competition offers less control.
Answer
the greatest potential control over price

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Monopoly and oligopoly markets offer the greatest potential control over price; monopolistic competition offers less control.

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2. ANALYSIS OF MARKET STRUCTURES
d monopoly is the local electrical power provider. In most cases, the monopoly power provider is allowed to earn a normal return on its investment and prices are set by the regulatory authority to allow that return. <span>2.2. Factors That Determine Market Structure Five factors determine market structure: The number and relative size of firms supplying the product; The degree of product differentiation; The power of the seller over pricing decisions; The relative strength of the barriers to market entry and exit; and The degree of non-price competition. The number and relative size of firms in a market influence market structure. If there are many firms, the degree of competition increases. With fewer firms supplying a good or service, consumers are limited in their market choices. One extreme case is the monopoly market structure, with only one firm supplying a unique good or service. Another extreme is perfect competition, with many firms supplying a similar product. Finally, an example of relative size is the automobile industry, in which a small number of large international producers (e.g., Ford and Toyota) are the leaders in the global market, and a number of small companies either have market power because they are niche players (e.g., Ferrari) or have little market power because of their narrow range of models or limited geographical presence (e.g., Škoda). In the case of monopolistic competition, there are many firms providing products to the market, as with perfect competition. However, one firm’s product is differentiated in some way that makes it appear better than similar products from other firms. If a firm is successful in differentiating its product, the differentiation will provide pricing leverage. The more dissimilar the product appears, the more the market will resemble the monopoly market structure. A firm can differentiate its product through aggressive advertising campaigns; frequent styling changes; the linking of its product with other, complementary products; or a host of other methods. When the market dictates the price based on aggregate supply and demand conditions, the individual firm has no control over pricing. The typical hog farmer in Nebraska and the milk producer in Bavaria are price takers . That is, they must accept whatever price the market dictates. This is the case under the market structure of perfect competition. In the case of monopolistic competition, the success of product differentiation determines the degree with which the firm can influence price. In the case of oligopoly, there are so few firms in the market that price control becomes possible. However, the small number of firms in an oligopoly market invites complex pricing strategies. Collusion, price leadership by dominant firms, and other pricing strategies can result. The degree to which one market structure can evolve into another and the difference between potential short-run outcomes and long-run equilibrium conditions depend on the strength of the barriers to entry and the possibility that firms fail to recoup their original costs or lose money for an extended period of time and are therefore forced to exit the market. Barriers to entry can result from very large capital investment requirements, as in the case of petroleum refining. Barriers may also result from patents, as in the case of some electronic products and drug formulas. Another entry consideration is the possibility of high exit costs. For example, plants that are specific to a special line of products, such as aluminum smelting plants, are non-redeployable, and exit costs would be high without a liquid market for the firm’s assets. High exit costs deter entry and are therefore also considered barriers to entry. In the case of farming, the barriers to entry are low. Production of corn, soybeans, wheat, tomatoes, and other produce is an easy process to replicate; therefore, those are highly competitive markets. Non-price competition dominates those market structures where product differentiation is critical. Therefore, monopolistic competition relies on competitive strategies that may not include pricing changes. An example of non-price competition is product differentiation through marketing. In other circumstances, non-price competition may occur because the few firms in the market feel dependent on each other. Each firm fears retaliatory price changes that would reduce total revenue for all of the firms in the market. Because oligopoly industries have so few firms, each firm feels dependent on the pricing strategies of the others. Therefore, non-price competition becomes a dominant strategy. Exhibit 1. Characteristics of Market Structure Market Structure Number of Sellers Degree of Product Differentiation Barriers to Entry Pricing Power of Firm Non-price Competition Perfect competition Many Homogeneous/ Standardized Very Low None None Monopolistic competition Many Differentiated Low Some Advertising and Product Differentiation Oligopoly Few Homogeneous/ Standardized High Some or Considerable Advertising and Product Differentiation Monopoly One Unique Product Very High Considerable Advertising From the perspective of the owners of the firm, the most desirable market structure is that with the most control over price, because this control can lead to large profits. Monopoly and oligopoly markets offer the greatest potential control over price; monopolistic competition offers less control. Firms operating under perfectly competitive market conditions have no control over price. From the consumers’ perspective, the most desirable market structure is that with the greatest degree of competition, because prices are generally lower. Thus, consumers would prefer as many goods and services as possible to be offered in competitive markets. As often happens in economics, there is a trade-off. While perfect competition gives the largest quantity of a good at the lowest price, other market forms may spur more innovation. Specifically, there may be high costs in researching a new product, and firms will incur such costs only if they expect to earn an attractive return on their research investment. This is the case often made for medical innovations, for example—the cost of clinical trials and experiments to create new medicines would bankrupt perfectly competitive firms but may be acceptable in an oligopoly market structure. Therefore, consumers can benefit from less-than-perfectly-competitive markets. PORTER’S FIVE FORCES AND MARKET STRUCTURE A financial analyst aiming to establish market conditions and consequent profitability of incumbent firms should start with the questions framed by Exhibit 1: How many sellers are there? Is the product differentiated? and so on. Moreover, in the case of monopolies and quasi monopolies, the analyst should evaluate the legislative and regulatory framework: Can the company set prices freely, or are there governmental controls? Finally, the analyst should consider the threat of competition from potential entrants. This analysis is often summarized by students of corporate strategy as “Porter’s five forces,” named after Harvard Business School professor Michael E. Porter. His book, Competitive Strategy, presented a systematic analysis of the practice of market strategy. Porter (2008) identified the five forces as: Threat of entry; Power of suppliers; Power of buyers (customers); Threat of substitutes; and Rivalry among existing competitors. It is easy to note the parallels between four of these five forces and the columns in Exhibit 1. The only “orphan” is the power of suppliers, which is not at the core of the theoretical economic analysis of competition, but which has substantial weight in the practical analysis of competition and profitability. Some stock analysts (e.g., Dorsey 2004) use the term “economic moat” to suggest that there are factors protecting the profitability of a firm that are similar to the moats (ditches full of water) that used to protect some medieval castles. A deep moat means that there is little or no threat of entry by invaders, i.e. competitors. It also means that customers are locked in because of high switching costs. <span><body><html>







Flashcard 1464701422860

Tags
#6-principles #69-ways-to-influence #commitment-and-consistency
Question
This is many times more powerful when [...].
Answer
Done publicly

Because it’s evolutionarily most important to use that we are seen to be consistent.

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This is many times more powerful when we have shown our actions to other people, or somehow publically committed to it. This is because it’s evolutionarily most important to use that we are seen to be consistent. And it’s almost physically painful to be seen to be inconsistent.</htm

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Flashcard 1620807912716

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Name the account's financial statement element

Prepaid expenses
Answer
Assets

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Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment propert

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3.1. Financial Statement Elements and Accounts
ounting periods), and sales returns and allowances (an offset to revenue reflecting any cash refunds, credits on account, and discounts from sales prices given to customers who purchased defective or unsatisfactory items). <span>Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment property Intangible assets (patents, trademarks, licenses, copyright, goodwill) Financial assets, trading securities, investment securities Investments accounted for by the equity method Current and deferred tax assets [for banks, Loans (receivable)] Liabilities Accounts payable, trade payables Provisions or accrued liabilities Financial liabilities Current and deferred tax liabilities Reserves Unearned revenue Debt payable Bonds (payable) [for banks, Deposits] Owners’ Equity Capital, such as common stock par value Additional paid-in capital Retained earnings Other comprehensive income Minority interest Revenue Revenue, sales Gains Investment income (e.g., interest and dividends) Expense Cost of goods sold Selling, general, and administrative expenses “SG&A” (e.g., rent, utilities, salaries, advertising) Depreciation and amortization Interest expense Tax expense Losses For presentation purposes, assets are sometimes categorized as “current” or “non-current.” For example, Tesco (a large European retailer) prese







Flashcard 1620834651404

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Name the account's financial statement element

Reserves
Answer
Liabilities

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Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment propert

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3.1. Financial Statement Elements and Accounts
ounting periods), and sales returns and allowances (an offset to revenue reflecting any cash refunds, credits on account, and discounts from sales prices given to customers who purchased defective or unsatisfactory items). <span>Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment property Intangible assets (patents, trademarks, licenses, copyright, goodwill) Financial assets, trading securities, investment securities Investments accounted for by the equity method Current and deferred tax assets [for banks, Loans (receivable)] Liabilities Accounts payable, trade payables Provisions or accrued liabilities Financial liabilities Current and deferred tax liabilities Reserves Unearned revenue Debt payable Bonds (payable) [for banks, Deposits] Owners’ Equity Capital, such as common stock par value Additional paid-in capital Retained earnings Other comprehensive income Minority interest Revenue Revenue, sales Gains Investment income (e.g., interest and dividends) Expense Cost of goods sold Selling, general, and administrative expenses “SG&A” (e.g., rent, utilities, salaries, advertising) Depreciation and amortization Interest expense Tax expense Losses For presentation purposes, assets are sometimes categorized as “current” or “non-current.” For example, Tesco (a large European retailer) prese







Flashcard 1620838845708

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Name the account's financial statement element

Debt payable
Answer
Liabilities

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Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment propert

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3.1. Financial Statement Elements and Accounts
ounting periods), and sales returns and allowances (an offset to revenue reflecting any cash refunds, credits on account, and discounts from sales prices given to customers who purchased defective or unsatisfactory items). <span>Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment property Intangible assets (patents, trademarks, licenses, copyright, goodwill) Financial assets, trading securities, investment securities Investments accounted for by the equity method Current and deferred tax assets [for banks, Loans (receivable)] Liabilities Accounts payable, trade payables Provisions or accrued liabilities Financial liabilities Current and deferred tax liabilities Reserves Unearned revenue Debt payable Bonds (payable) [for banks, Deposits] Owners’ Equity Capital, such as common stock par value Additional paid-in capital Retained earnings Other comprehensive income Minority interest Revenue Revenue, sales Gains Investment income (e.g., interest and dividends) Expense Cost of goods sold Selling, general, and administrative expenses “SG&A” (e.g., rent, utilities, salaries, advertising) Depreciation and amortization Interest expense Tax expense Losses For presentation purposes, assets are sometimes categorized as “current” or “non-current.” For example, Tesco (a large European retailer) prese







Flashcard 1621317782796

Tags
#reading-6-time-value-of-money
Question
[...] occurs when the number of compounding periods becomes infinite.
Answer
Continuous compounding


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Subject 1 Time Value of Money and Interest Rates
nominal risk-free rate (real rate + an inflation premium) and a default risk premium. Compounding is the process of accumulating interest over a period of time. A compounding period is the number of times per year that interest is paid. <span>Continuous compounding occurs when the number of compounding periods becomes infinite; interest is added continuously. Discounting is the calculation of the present value of some known future value. Discount rate is the rate used to calculate the present value of some future cash flow. Disco







Flashcard 1621378600204

Tags
#tvm
Question
The sum of the real risk-free interest rate and the inflation premium is the [...]

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Flashcard 1621981793548

Tags
#tvm
Question
The interest earned each period on the original investment.
Answer
Simple interest

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Flashcard 1622183382284

Question
The definition of 'defraud'
Answer
To illegally obtain money from (someone) by deception.

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Mujālasāt emerged in ninth-century Iraq and flourished in the tenth century, spreading from Iraq to the west, to Andalusian Spain and to North Africa. These literary salons endured as a cultural practice well into the modern era.
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This forum for literature offered edification, entertainment, and escape for middle- and upper-ranking men and women; it also served as a means of building one’s public reputation, establishing one’s status, expanding one’s social network, and socializing the young.
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Arabists should analyze the ways in which generations of amateur audiences reinterpreted old literature in order to breathe new life into traditional texts, which can turn cold and alien. Without an analysis of audience reception, we are left with a canon detached from the particular needs and choosy sensibilities of those who exercised the privilege of selecting texts for future transmission—or not.
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By analogy, I draw parallels throughout this work with the institutions of the marzēaḥ (of western Asia in the Bronze Age) and the Greek symposion#(beginning in the Geometric period, 900–700 B.C.). I review the corpus of modern scholarship that gauges these social institutions’ character and impact.
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and exploring some basic questions: How large were mujālasāt? What type of people attended—were there elders, women, children, or servants present? Who spoke what, and to what degree did attendees take turns or dominate? How long did sessions last, and were they held at night or during the day? Were they held indoors or outside, and which buildings were used? For a social institution that has occupied more of a place in the daily lives of medieval men and women than television or classroom education in our own time, this gap in knowledge is grave.
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I attempt to address these basic questions and take that description to the level of cultural analysis. If mujālasāt were prevalent and enduring, why did individuals participate? If people performed poetry and competed for prestige in mujālasāt, what impact did their text selection and performance in assembly have on the formation of canon, identity, community, and ideology? How did the performance of poetry and narrative shape their vision of an Arabo- Islamic past?
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The anti-imperial reading generates irreducible problems. However, for Al-Buhturi meticulously developed a career that would protect his chief per- sonal interests in life-his professional reputation as a poet in Iraq and his property in Syri
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As for the second interest, the anti-imperial reading would stand as anath- ema to al-Buhturi's public persona as court poet, specializing in panegyric that aims to build the public image of men of state: He
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hese stories-regardless of their facticity-indicate a public reputation for panegyric, i
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The Abbasid caliphs were Arabs descended from Abbas ibn Abd al-Muttalib, one of the youngest uncles of Muhammad and of the same Banu Hashim clan. The Abbasids claimed to be the true successors of Prophet Muhammad in replacing the Umayyad descendants of Banu Umayya by virtue of their closer bloodline to Muhammad.

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Abbasid Caliphate - Wikipedia
empire 5 Separatist dynasties and their successors 6 Abbasid Khanate of Bastak 7 See also 8 Footnotes 9 References 10 Bibliography 11 External links History[edit] Abbasid Revolution (750–751)[edit] Main article: Abbasid Revolution <span>The Abbasid caliphs were Arabs descended from Abbas ibn Abd al-Muttalib, one of the youngest uncles of Muhammad and of the same Banu Hashim clan. The Abbasids claimed to be the true successors of Prophet Muhammad in replacing the Umayyad descendants of Banu Umayya by virtue of their closer bloodline to Muhammad. The Abbasids also distinguished themselves from the Umayyads by attacking their moral character and administration in general. According to Ira Lapidus, "The Abbasid revolt was s




Also the argument about the importance of performance context shouldn’t elide the context in which this and all other studies of the naqāʾiḍ have been produced. Are there any contemporary accounts? How much later were these texts set down in writing? How did they circulate during the poets’ lifetimes?
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Apart from its ob- vious freedom from the relative external structural rigour of the qafida, the occasional poem is generally marked by the simplicity of its language.
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Flashcard 1622220606732

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question


Rent, utilities, salaries, advertising are examples of [...]
Answer
Selling, general, and administrative expenses “SG&A”

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Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment propert

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3.1. Financial Statement Elements and Accounts
ounting periods), and sales returns and allowances (an offset to revenue reflecting any cash refunds, credits on account, and discounts from sales prices given to customers who purchased defective or unsatisfactory items). <span>Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment property Intangible assets (patents, trademarks, licenses, copyright, goodwill) Financial assets, trading securities, investment securities Investments accounted for by the equity method Current and deferred tax assets [for banks, Loans (receivable)] Liabilities Accounts payable, trade payables Provisions or accrued liabilities Financial liabilities Current and deferred tax liabilities Reserves Unearned revenue Debt payable Bonds (payable) [for banks, Deposits] Owners’ Equity Capital, such as common stock par value Additional paid-in capital Retained earnings Other comprehensive income Minority interest Revenue Revenue, sales Gains Investment income (e.g., interest and dividends) Expense Cost of goods sold Selling, general, and administrative expenses “SG&A” (e.g., rent, utilities, salaries, advertising) Depreciation and amortization Interest expense Tax expense Losses For presentation purposes, assets are sometimes categorized as “current” or “non-current.” For example, Tesco (a large European retailer) prese







Flashcard 1622234762508

Tags
#tvm
Question
Interest calculated on the principal only.
Answer
Simple interest

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