Financial statement analysis || with Error-free Solutions.
3 views 0 purchase
Course
Financial statement analysis |
Institution
Financial Statement Analysis |
Balance Sheet correct answers provides a snapshot of a company's financial position as of a certain date
Assets correct answers items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares)
Assets= liabilities + stockholders' equity
...
Financial statement analysis || with Error-free Solutions.
Balance Sheet correct answers provides a snapshot of a company's financial position as of a
certain date
Assets correct answers items of value such as inventory and equipment are financed with
liabilities(debt) or stockholders' equity(owners' shares)
Assets= liabilities + stockholders' equity
Income Statement correct answers reports the company's profitability during an accounting
period
Revenues correct answers amounts recieved from customers for products sold or services
provided
Expenses correct answers costs incurred to produce revenues
Net Income correct answers Revenues-Expenses
Statement of Stockholders equity correct answers reports if the earnings of this accounting
period are distributed as dividends or retained in the business as retained earnings. Also reports
amounts paid by stockholders to purchase common stock and preferred stock
Retained earnings(ending) correct answers Retained earnings + Net Income - (Dividends)
Contributed capital (ending) correct answers Contributed capital, beginning + issuance of shares
- (Repurchase to retire shares)
Statement of cash flows correct answers reports cash inflows + cash outflows during an
accounting period
Accounts recievable correct answers amounts to be recieved in the future from customers
Accounts Payable correct answers amounts that the corporation must pay to suppliers in the
future
Stockholders' Equity correct answers portion of assets the owners are free and clear of any
liabilities
Contributed Capital correct answers amounts paid by stockholders to purchase common stock
and preferred stock
Retained Earnings correct answers Net income earned by the company since its incorporation
and not yet distributed as dividends
, Cost of Goods Sold correct answers largest expense item which reports the wholesale costs of
inventory sold during the accounting period
Operating activities correct answers relate to a company's main business: selling products or
services to earn net income
Investing activities correct answers relate to the need for investing in property, plant, and
equipment or expanding by making investments in other companies
Financing activities correct answers relate to how a company finances its assets with debt or
stockholders' equity
GAAP correct answers rules that management must follow when preparing financial statements
available to investors
FASB correct answers most accounting reporting standards that formulate GAAP are set by the 7
full time voting members
Audits correct answers attest to whether a company's financial statements comply with the
GAAP rules
CPAS correct answers licensed by the state/conduct audits
AICPAs correct answers defines ethical behavior code of professional conduct
PCAOB correct answers establish auditing standards and conduct inspections of the public
accounting firm that perform audits
SEC correct answers legislative authority to set the reporting rules for accounting info of
publicly held corporations
Historical cost principle correct answers states that companies should record assets and services
at their acquisition cost, the amount paid for them, because this is the most reliable information
Debt Ratio correct answers Total liabilities/ Total assets
reveals the proportion of assets financed with debt and solvency
Asset Turnover correct answers Sales revenue/ total assets
measures how efficiently the company uses assets to generate revenue
Return on Sales correct answers Net Income/Sales Revenue
measures the profitability of each dollar of revenue
Return on Asset correct answers Net Income/ total assets
reveals how efficiently assets are used to generate profit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.69. You're not tied to anything after your purchase.
