Income Statement
Why is depreciation considered a special type of expense in Accounting?
Non-Cash expense
The term used to explain how quickly a company can convert assets into cash.
Liquidity
The three main sections of the cash flow statement are
operating, investing and financing
The proper preparation sequence is: Income Statement → ___ → Balance Sheet → Cash Flow Statement
Statement of Shareholders' equity/ Retained Earnings Statement
Vodafone
f a company has Gross Profit of $250,000 and Revenue of $2,000,000, what is its Gross Margin Percentage?
12.5%
If a company has been profitable for 10 years but has never paid a dividend, this specific part of Shareholders' Equity would be called
Retained Earnings
Buying equipment for cash is considered this type of activity
Investing
The statement that describes the financial position of a company
Balance Sheet
Oldest Mobile Network operator in the world
Mobinil
If a company's Gross Profit Margin decreases from 40% to 35% while sales volume remains constant, the most likely cause is
increase in COGS
The portion of a long-term loan that must be paid within the next year is reclassified to this section of the Balance Sheet
Current Liabilities
Paying cash to settle a lawsuit would be classified in this section of the cash flow statement
operating
When you buy something and agree to pay for it later, what is it called?
buying on credit, accounts payable for buyer and accounts receivable for seller
This tech giant was originally called "BackRub" when it was founded in 1996.
Another name for Income Statement
Statement of Profit/Loss
This term describes resources that have future economic value but do not have physical substance
Intangible Assets
Paying dividends to shareholders is considered this type of activity.
Financing
At the start of 2024, 'Innovate Corp.' had Retained Earnings of $2,500,000. During the year, they reported Net Income of $800,000, paid cash dividends of $350,000 They also discovered an error in 2023's books, understating depreciation expense by $50,000 (net of tax). What is the correct ending balance of Retained Earnings as of December 31, 2024
$2,900,000
This 2013 film starring Leonardo DiCaprio was based on the real-life story of corrupt stockbroker Jordan Belfort and his "pump and dump" scheme
Wolf of Wall Street
When a company like Coca-Cola provides a volume discount to a large retailer like Careffour, this is not recorded as an expense but as
Sales discount
The correct date format on top of a balance sheet
as of mm, dd,yy.
Purchasing an Equipment on account is shown under which activity
Doesn't show. Non-cash transaction
A company shows strong Net Income growth but declining Operating Cash Flow. Meanwhile, its Balance Sheet reveals rapidly increasing Accounts Receivable. Describe the relationship between these trends and what it suggests about the company's business practices
The company is likely recognizing revenue aggressively but not collecting cash efficiently. The Income Statement shows apparent success while the Balance Sheet and Cash Flow Statement reveal underlying operational problems and potential future write-downs.
Body that issues IFRS
IASB