Income Statement
Shows profit or loss over time
What is the Income Statement?
Assets = Liabilities + ?
Equity
Buying equipment appears in which section?
Investing
What is the formula for Current Ratio?
Current Assets / Current Liabilities
Paying a loan principal affects which statement?
The difference between sales and COGS
What is Gross Profit?
Money owed to suppliers
Accounts Payable
Paying wages appears in which section?
Operating
What is the formula for Profit Margin?
Net Income / Revenue
Recording depreciation affects which statements?
Income & Balance Sheet
Revenue - Expenses = ?
What is Net Income?
Land and buildings are what type of asset?
Fixed/Noncurrent Asset
Non-cash transactions appear where?
Nowhere on Cash Flow
High debt ratio means?
Company relies more on borrowed funds
Buying supplies on credit affects?
Balance Sheet only
Interest expense appears where?
Income Statement
Retained Earnings are part of
Equity
Issuing shares increases
Cash from Financing Activities
What does the formula for Asset Turnover show?
Efficiency of asset use
Paying rent affects which statement?
Income & Cash Flow
Gain on asset sale appears on?
Income Statement
When assets = $50,000 and liabilities = $30,000 then what?
Equity = $20,000
Cash flow statement shows changes in
Cash and Cash Equivalents
What ratio measures liquidity?
Current Ratio
Declaring dividends affects?
Equity (Retained Earnings)