Finance Basics (HBR 20-Minute Manager Series)

Index

accounting methods, 11–13

—accrual, 12–13, 99

—cash-based, 11, 102

accounts payable, 21, 99

—ending, 35–36

accounts receivable, 20, 99

—ending, 35

accrual, 99

—accrual accounting, 12–13, 99–100

accrued expenses, 21

acid-test ratio, 37, 100, 113. See also quick ratio

allocation, 100

amortization, 100

assets, 17–22

—acquisition of, 18

—capital, 25

—cash flow statements and, 23, 25

—current, 20, 104

—current, minus inventory, 37. See also quick ratio

—in current ratio, 37

—definition of, 18, 101

—fixed, 20–21, 107

—fixed/long-term, 20–21

—return on, 33

—turnover of, 35, 101

—valuation of, 20–21

assumptions, in budgets, 52–58

—articulating, 53–58

—documenting, 56

—quantifying, 59–61

—sensitivity analysis on, 67, 77–79

 

balance sheets, 10