Financial Statement Flashcards
how many type of financial statement are there?
3 income statement , cashflow statement , Balance sheet statement
what is a 10-k and 10-q?
10-k is the is an annual report and 10-q is a quarterly report
what is a balance sheet?
it is the summary of a company at a specific period of time that shows the company’s assets , liabilities and equity
what is the accounting equation?
Assets=liabilities + equity
what is equity?
Equity is the total amount left if all the assets where liquidated and all the labilities where paid off.
what are the section in a balance statement?
current assets , Non-current assets(long-term assets) , current liabilities, non current liabilities(long-term liabilities) , Equity
what are the sections in a income statement?
Gross profit , Operating income, Income (loss) Before Taxes , Income (loss) After taxes
Examples of gross profit?
Gross profit is the revenue left over after you deduct the costs of making a product or providing a service. You can find the gross profit by subtracting the cost of goods sold (COGS) from the revenue. For example, if a company had $10,000 in revenue and $4,000 in COGS, the gross profit would be $6,000.
Examples of operating income?
operating Income = Gross income - operating expenses. Operating expenses include selling, general and administrative expense (SG&A), depreciation, and amortization, and other operating expenses. Operating income excludes taxes and interest expenses, which is why it’s often referred to as EBIT.
Examples of Income (loss) Before Taxes?
EBIT (earnings before interest and taxes) is a company’s net income before income tax expense and interest expenses are deducted. EBIT is used to analyze the performance of a company’s core operations without the costs of the capital structure and tax expenses impacting profit
Examples of income (loss) After taxes?
Net income after taxes (NIAT) is a financial term used to describe a company’s profit after all taxes have been paid.
Examples of current assets?
Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
Examples of non-current assets(long-term assets)?
Examples of noncurrent assets include investments, intellectual property, real estate, and equipment.
Examples of current liabilities?
Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices , Sales taxes payable , Payroll taxes payable , Income taxes payable , Interest payable.
Examples of non current liabilities(long-term liabilities)?
loans and lease obligations, bonds payable and deferred revenue.
