Accounting reports issued periodically to present past performance and a snapshot of the firm's assets and the financing of those assets
100
The Balance Sheet is also known as....
The Statement of Financial Position
100
What are Inventories?
Raw materials, work-in progress and finished goods
100
What are the amounts owed to suppliers purchases made on credit known as?
Accounts Payable
100
List 3 sources of value that don't appear on the Balance Sheet
1) Opportunities for growth 2) The quality of the management team 3) Relationships with supplier and customers
200
Who relies on financial statements to obtain reliable info about a corporation?
Investors, creditors, financial analysts, managers and regulators
200
What is the Balance Sheet Identity?
Assets = Liabilities + Stockholder's Equity
200
What are Other Current Assets?
Items such as prepaid expenses
200
What are loans that must be repaid in the next year.
Notes Payable
200
What is the equation for Market Capitalization?
Market Capitalization = Market Price per Share x Shares Outstanding
300
What are financial statements used for?
To measure the healthiness of a business
300
List the 4 Current or Short Term Assets
1) Cash and other marketable Securities 2) Accounts Receivable 3) Inventories 4) Other Current Assets
300
What are Long Term Assets?
Assets that produce benefits for more than one year reduced through a yearly deduction called depreciation according to a schedule that depends on an asset's life
300
What are items such as salary or taxes that are owed but have not yet been paid, also known as deferred or unearned revenue?
Accrual Items
300
What is the equation for Enterprise Value?
Enterprise Value = Market Capitalization + Debt - Cash
400
What must public companies in the US do and when?
File financial results with the US Securities and Exchange Commission (SEC) on a quarterly (10-Q) and annual (10-K) basis and send them to the shareholders every year
400
Define Cash and Other Marketable Securities
Low risk investments that are easily sold and converted to cash
400
What is NOT an actual cash expense, but a way of recognizing that fixed assets wear out and become less valuable as they get older. (Land is an exception)
Depreciation
400
What is Long Term Debt?
A loan or debt obligation maturing in more than a year
400
The Income Statement is also known as....
The Profits and Losses Statement
500
Who is the IASB accepted by?
All major stock exchanges around the world except the US and Japan (they use GAAP)
500
What are Accounts Receivables?
Amounts owed to the firm by customers who have purchased on credit
500
What are the 3 Current (Short Term) Liabilities?
1) Accounts Payable 2) Notes Payable and Short Term Debt 3) Accrual Items
500
Define Book Value
The price paid for an asset minus the depreciation
500
What is the Income Statement?
It lists the firm's revenues and expenses over a period of time