Ch 4 (2024)

The accounting procedure that recognizes revenues and expenses when they are incurred rather than when cash is received or spent

• Benchmark company
• Annual report
• Chief executive officer
• Accrual accounting

A statement of a company's operating and financial performance issued at the end of its fiscal year

• Annual report
• Benchmark company
• Accrual accounting
• Chief executive officer

A competitor that has historically demonstrated outstanding financial performance used to establish financial performance goals

• Chief executive officer
• Accrual accounting
• Benchmark company
• Annual report

Charged with carrying out the strategy and policy of the board of directors

• Annual Report
• Chief executive officer
• Accrual accounting
• Benchmark company

Responsible for planning and managing a company’s financial resources

• Chief operating officer
• Debt financing
• Due care
• Chief financial officer

Directs the actual operations of the business

• Chief financial officer
• Due care
• Chief operating officer
• Debt financing

The use of borrowed money to obtain needed capital

• Debt financing
• Chief financial officer
• Due care
• Chief operating officer

A commitment to completing all tasks thoroughly and with the highest level of quality

• Chief operating officer
• Due care
• Debt financing
• Chief financial officer

Offers an ownership interest in the company to investors

• Financial leverage
• Financial ratios
• Equity financing
• Equities

Using debt financing to increase the rate of return on assets

• Equity financing
• Benchmark company
• Financial ratios
• Financial leverage