Balance Sheet
Stock Holders Equity
Assets - Liabilities
Earning of a business from business activities
Revenue
A strategy that involves investing in different companies representing different industries
Diversification
A yearly record summarizing the financial condition of a corporation that must be distributed to shareholders
The Annual Report
Cash, Equipment, and inventory
Assets
Accounts receivable would be classified as this (be specific)
Current Asset
Amounts a business pays to operate the business and earn the revenue
Expenses
This company is classified as _______ for having sales over 5 billion.
Large
These 2 financial documents will be located in the financial statements section of the annual report
The balance sheet and income statement
Net Sales - COGS (CGS) - SG&A
Operating Income
Debts due after one year
Long-term liabilites
Top line of Income Statement
Net Sales
72 ÷ x%= years
72 ÷ years= x%
This information will be located in the business segments section
What percentage of the company is dedicated to each business segment
These expenses have already happened but have not been paid for.
Accrued Expenses
These assets are "stuck" in place and are very important for a business
Fixed Assets
Operating expenses directly involved in producing the company's products/services: labor, raw material, and other related expenses
Cost of Goods Sold (COGS)
Investing roughly equal amounts of money at regular intervals. Hint: stock prices go up and down but you keep investing the same amount of money.
Dollar Cost Averaging
These professionals check up on public companies to make sure they are following the rules of accounting
Independent Auditors
Known as a snapshot or photo of a company
Balance Sheet
Current Assets
Net Income ÷ Outstanding Common Shares
Earnings Per Share (EPS)
List the four basic investment principles located in chapter 5.1
1.) Invest on a regular basis over a long period of time
2.) Reinvest all earnings
3.) Invest only in good quality companies with proven track records of growth
4.) Diversify your portfolio to reduce overall risk
This is an independent agency of the federal government that protects investors, maintain fair, orderly, and efficient markets, and facilitate capital formation
The SEC ( Securities and Exchange Commission)
Daily Double
Income Taxes