Classifications
Inventory Classification?
Current Assets
These are economic resources with the ability or potential to provide future benefits?
Assets
What are the 3 financial statements?
1- Income Statement
2- Balance Sheet
3- Cash Flow
Property, Plant & Equipment Classification?
Fixed Assets
Which financial statement shows the results of the operating activities of a firm for a specific period of time?
Income Statement
How does the net income of a business effect its balance sheet.
Net Income increases Retained Earnings.
Most valuable assets of a company?
Employees
Assets - Liabilities = ____?
Shareholders Equity
Tell me what the Income Statement reports.
Revenue - Expenses = Net Income over a period of time. It shows how profitable a business was over an specific period of time.
Accumulated Depreciation - Classification
Contra Asset
Working Capital Formula?
Current Assets - Current Liabilities
What are the 3 activities of the statement of cash flows?
Operating activities, investing activities and financing activities.
Allowance for doubtful debts/accounts - Classification
Contra Asset
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
How does Net Income affect the Balance Sheet?
Net Income is added to Retained Earnings in Balance Sheet