Wall Street Prep Questions And Answers All Correct

Wall Street Prep Questions And Answers All Correct Assets - ANS resources a company uses to operate its business includes cash, A/R, PP&E Liabilities - ANS represents the company's contractual obligations and includes A/P, debt, accrued expenses Shareholder's equity - ANS is the residual the value of the business available to the owners (shareholders) after debts have been paid off Income statement - ANS illustrates the profitability of the company over a specified period of time broad sense: shows revenue-expenses Balance sheet - ANS snapshot of the company economic resources and funding for those resources at a given point in time (A = L + SE) Revenue - ANS "top-line" represents the sale of goods and services it is recorded when earned (even though cash might not have been received at the time of transaction) Expenses - ANS netted against revenue to arrive at net income COGS (directly associate with good production), SG&A (indirectly associated with production), interest expense (expense related to paying debt holders periodic payments), taxes, depreciation expense (non-cash expense accounting for the use of PP&E, often imbedded within COGS and SG&A) Net income - ANS "bottom-line" revenue-expenses