Unit One

Passage 1.1 Book Value

Passage 1.2 Budget

Passage 1.3 Capital and Revenue Expenditures

Passage 1.4 Cash Flow

Passage 1.5 Cost Principle

Passage 1.6 Direct Costing and Absorption Costing

Passage 1.7 Errors

Unit Two

Passage 2.1 Forecast

Passage 2.2 Intangible Assets

Passage 2.3 Liabilities

Passage 2.4 Liquidation

Passage 2.5 Lower of Cost or Market

Passage 2.6 Personal Financial Statements

Passage 2.7 Substance over Form

Unit Three

Passage 3.1 Capital Stock

Passage 3.2 Cash Management

Passage 3.3 Certificates of Accrual on Treasury Securities

Passage 3.4 Certificates of Deposit

Passage 3.5 Checks

Passage 3.6 Charting

Passage 3.7 Collateralized Mortgage Obligations

Unit Four

Passage 4.1 Debenture

Passage 4.2 Defined Benefit Pension Plans

Passage 4.3 Discounted Cash Flow

Passage 4.4 Eurobond Market

Passage 4.5 Finance

Passage 4.6 Financial Forecast

Passage 4.7 Futures Market

Unit Five

Passage 5.1 Insurance

Passage 5.2 Leverage

Passage 5.3 Limited Partnership

Passage 5.4 Loanable Funds Theory

Passage 5.5 Merger

Passage 5.6 Portfolio Insurance

Passage 5.7 Preferred Stock

Passage 5.8 Put Option

Unit Six

Passage 6.1 Role of Investment Bankers

Passage 6.2 Buying New Issues

Passage 6.3 What Shares Are Traded

Passage 6.4 Membership on the Exchange

Passage 6.5 The Bond Market

Passage 6.6 Time Limit of Orders

Passage 6.7 Repurchase Agreement

Unit Seven

Passage 7.1 Interest-Rate Risk

Passage 7.2 Business Risk

Passage 7.3 Disparate Accounting Standards

Passage 7.4 Floating Rates

Passage 7.5 Sinking Funds

Passage 7.6 Passive or Buy-and-Hold Strategy

Passage 7.7 Immunization Risk

Unit Eight

Passage 8.1 Maturity

Passage 8.2 Quality

Passage 8.3 Coupon

Passage 8.4 Why Buy Options

Passage 8.5 Why Sell Options

Passage 8.6 Warrants

Passage 8.7 Short Selling

Passage 8.8 Purchase the Stock and Sell A Call

Unit Nine

Passage 9.1 Control Function

Passage 9.2 Delegation

Passage 9.3 Devaluation

Passage 9.4 Discount Rate

Passage 9.5 Eurodollars

Passage 9.6 Euromoney Market

Passage 9.7 Forward Contracts

Passage 9.8 Multinational Corporation(MNC)

Unit Ten

Passage 10.1 Beta Coefficient

Passage 10.2 Economies of Scale

Passage 10.3 Economics

Passage 10.4 Fiscal Policy

Passage 10.5 Inflation

Passage 10.6 Patent

Passage 10.7 Payroll Taxes

Passage 10.8 Warranties

Suggested Key

Notes