Set 1 - Core Concepts Flashcards Preview

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Flashcards in Set 1 - Core Concepts Deck (12):
0

Balance Sheet Formula

Assets = Liabilities + Owner's Equity

1

Income Statement Formula

Revenues - Expenses = Net Income

2

Statement of Stockholder's Equity Formula

Beginning Retained Earnings
+ Net Income
- Dividends
____________________________
Ending Retained Earnings

3

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

4

CFO

Cash flows from operating activities

5

CFI

Cash flows from investing activities

6

CFF

Cash flows from financing activities

7

Typical CFO items

Cash flows directly related to earning income, salaries to production employees, bills from suppliers

8

Typical CFI items

Cash flows related to equipment and plant investments, other investments

9

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.

10

On a balance sheet, assets are listed in what order?

By ease of conversion to cash (i.e. cash first)

11

On balance sheet, liabilities are listed in what order?

By their maturity dates (due dates)