Chapter 14 Flashcards
(16 cards)
gross profit margin
portion of revenue left over after direct costs have been paid (wages materials etc.)
profitability margin
portion of revenue left over after operating expenses have been payed
primary financial statements
balance sheet
income statements
statements of cash flow
operational transactions
flow of money in day-to-day business dealings
capital asset transactions
decisions managers mak for investments and divestments of capital assets (buildings, equipment, subsidiaries etc.)
income statement
financial statement that answers whether we are earning profit from sales vs expenses (specific period in time)
balance sheet
resources the organization has at its disposal at a given point in time, and obligations (liabilities) when purchasing these resources
owners equity
value of capital received from the owners that is used to fund start-up and operations as well as reflects retained earnings
retained earnings
value of prior earnings that an organization has collected/saved for future investment in the business
statement of cash flows
shows total movement of cash in and out of the business
cash from operational activities
adjustments in net income to relict actual cash provided by operating activities
cash from financing activities
sources of cash flowing INTO the organization from non-operatng activities
cash from investing activities
uses of cash flowing OUT of the organization from non-operating activities
net change in cash position
net movement in cash due to various business activities (on cash flow statement)
forecasting and budgeting
managements ability to predict results for upcoming period
designated restricted assets
assets designated for a specific purpose and not available for managers to support organizational operating needs
