Management and Organizational Studies 2310A/B Chapter Notes - Chapter 3: Reserve Requirement, Cash Flow, Quick Ratio

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Stacey Hann

Document Summary

Cash flow: generate cash by selling a product, asset or security, cash flow from assets = cash flow to creditors + cash flow to owners. Security sells by either borrowing or selling and equity interest. Sources of cash: a firm"s activities that generate cash. Uses of cash: a firm"s activities in which cash is spent. Statement of cash flows: a firm"s financial statement that summarizes its sources and uses of cash over a specified period: operating activities, financing activities and investment activities. Express the change in cash on a per-share basis. Common size statement: a standardized financial statement presenting all items in percentage terms. Common base year statement: a standardized financial statement presenting all items relative to a certain base year amount. Financial ratios: relationships determined from a firm"s financial information and used for comparison purposes: way to compare and investigate the relationships between difference pieces of financial information.