Income statement.
What does it mean when a number is in parenthesis on a income statement?
It is a loss.
what are current assets?
assets that are short term such as daily office needs, such as paper, pens, chairs, etc.
what is a fixed cost? (add an example)
a cost that does not change price, and is constant despite company profit. (Ex. Rent for company buildings)
what are non-current assets? (add an example)
assets that are long term, such as pieces of land.
What are the Main features of an income statement?
Revenues, Expenses, and net profit.
What are intangible assets? (add an example)
assets that are not physical, such as shares in the stock market.
what is sales revenue?
Total amount of money gained through all means without subtracting the expenses tied to them.
how do you determine average selling price?
Sales revenue / items sold
What is the First section in the Income statement?
Continuing operations/revenue
Who are shareholders, and why do they care about your company?
Shareholders are people who own parts of the company as a whole, and therefore are affected by any company mishaps or decisions.
What are variable costs?
costs that fluctuate, such as raw material for products.
what are the 2 aspects of business goals
profitability and liquidity
when profit is shown, it usually has another option for the outcome beside it, what is this outcome?
What are stakeholders, and give an example of a person who may be one.
A stakeholder is someone who holds interest in the business, and its decisions and profits. an example of a person who would be a stakeholder is an employee or a person who is interested in buying shares in the company.
what two types of cost does total cost have?
Fixed costs + Variable costs
What are the three parts of business activities?
financing, investing, and operating
what is the final section in the income statement before the profit for the year?
discontinued operations.
what are intangible liabilities?
Liabilities (constant costs) that are not real, such as agreements in a contract
Explain revenue streams
Profits that generate unrelated to the main product, such as renting out company assets, or investments.
What are indirect costs? (add an example)
Costs that don't affect a product directly, but are needed in order to keep the business running (EX. human resources in a paper company)