Fm Concepts

FINANCIAL MANAGEMENT CONCEPTS FOR
M.B.A II SEMESTER STUDENTS

| |ABC System : a System used to categorize inventory items to ensure that the most important ones are reviewed most often. |
| |Account Receivable: A balance due from a customer. |
| |Aggressive Working Capital Investment Policy : A policy under which holdings of cash, securities, inventories, and receivables are |
| |minimized. |
| |Aging Schedule : A report showing how long accounts receivable have been outstanding; it gives the percentage of receivables currently past|
| |due and the percentages past due by specified periods. |
| |Amortization Schedule: A schedule showing precisely how a loan will be repaid. It gives the required payment on each specified date and a |
| |breakdown of the payment showing how much interest constitutes and how much repayment of principal constitutes. |
| |Amortized Loan : A loan that is repaid in equal payments over its life. |
| |Annual Report : A report issued annually by a corporation to its stockholders. It contains the basic financial statements, along with |
| |management’s opinion of the past year’s operations and of the firm’s future prospects. |
| |Annuity : A series of payments of an equal, or constant, amount for a specified number of periods. |
| |Annuity Due : An annuity in which the payments occur at the beginning of each period.