Flashcards in Set 1 - Core Concepts Deck (12):
Balance Sheet Formula
Assets = Liabilities + Owner's Equity
Income Statement Formula
Revenues - Expenses = Net Income
Statement of Stockholder's Equity Formula
Beginning Retained Earnings
+ Net Income
Ending Retained Earnings
Statement of Cash Flows Formula
+/- cash flows from operating act.
+/- cash flows from investing act.
+/- cash flows from financing act.
change in cash
+ beginning cash balance
ending cash balance
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Typical CFO items
Cash flows directly related to earning income, salaries to production employees, bills from suppliers
Typical CFI items
Cash flows related to equipment and plant investments, other investments
Typical CFF items
Cash flows related to the financing of the business including receipt and payment of money to investors and creditors.
Does not include money paid to suppliers.
On a balance sheet, assets are listed in what order?
By ease of conversion to cash (i.e. cash first)