Adventis stuvia - Study guides, Class notes & Summaries

financial statement communicates what? - Answer - financial condition - results of operations - various other activities of an organization how board of directors use financial data... - Answer - hold management accountable - make board-level decisions about corporate strategy how company management uses financial data... - Answer - measure performance - make strategic, operating and financial decisions how creditors use financial data... - Answer - measure creditworthiness - liqu...

What do Financial Statements Communicate? - Answer 1. Financial condition of an organization 2. Results of operations of an organization 3. Various other activities of an organization 3 Financial State Reports - Answer 1. Income Statement 2. Balance Sheet 3. Cash Flow Statement Why do Board of Directors Use Financial Statements? - Answer To hold management accountable and make board-level decisions about corporate strategy. Why does Company Management Use Financial Statements? - Ans...

financial statement communicates what? - Answer - financial condition - results of operations - various other activities of an organization how board of directors use financial data... - Answer - hold management accountable - make board-level decisions about corporate strategy how company management uses financial data... - Answer - measure performance - make strategic, operating and financial decisions how creditors use financial data... - Answer - measure creditworthiness - liqu...

what is value - Answer what people are willing to pay for (what the buyer pays) who said, "Value is what people are willing to pay for" - Answer John Naisbitt 2 primary types of valuation - Answer 1. relative valuation 2. intrinsic valuation relative valuation refers to what - Answer methods that compare the price of a company to the market value of similar assets intrinsic value refers to what - Answer the value of a company through fundamental analysis without reference to its m...

Board of Directors - Answer Hold management accountable and make board-level decisions about corporate strategy. Company Management - Answer Measure performance and make strategic, operating and financial decisions Creditors - Answer Measure creditworthiness, liquidity and bankruptcy Investors - Answer Make decisions on buying or selling equity investments Acquirers - Answer Determine valuation and make investment decisions Regulators - Answer Determine whether the company is oper...

an investor puts $50 million of equity capital into a business in exchange for 90% equity stake. Three years later, the business is sold for 90 million transaction value. When its sold, it has $15 million of debt and $3 million of cash. What is the annualized return to the investor - Answer 12.0% an investor puts $50 million of equity capital into a business in exchange for 90% equity stake. Three years later, the business is sold for 90 million transaction value. When its sold, it has $10 mi...

Financial Statements - Answer income statement + balance sheet + cash flow statement. communicate the financial condition. Income Statement - Answer presents the results of operations over a period of time. shows stakeholders whether the compay made or lost money. Revenue/Sales - Answer in income statement. number charged for the delivery of goods or services. Cost of Sales/Cost of Goods Sold - Answer in income statement. direct cost of producing revenue. Gross Profit - Answer in...

what is the purpose of the income statement? What does it indicate? - Answer to show stakeholders if the firm made or lost money during the period being reported it indicates how revenues are transformed into net income define: Revenue - Answer the amount charged for the delivery of goods and services define: COGS - Answer direct costs of producing revenue define: Operating Expense - Answer all other expenses required to run the business what does Operating Income indic...

The Income Statement A) Presents the results of operations over a period of time B) Discloses the resources an organization controls and the claims against those resources C) Shows an organization's financial position at a point in time D) Shows the inflows and outflows over a period of time - Answer A Which of the following is not accurate in regards to the balance sheet A) Shows an organization's financial position at a point in time B) Discloses the resources an organization contro...

What is the direct cost of producing revenue - Answer Cost of Sales Which of the following falls into investing activities - Answer Capital Expenditures Which of the following is not accurate in regards to accounts receivable ? - Answer All else being equal if accounts receivable increases, cash also increases Which of the following balance sheet items are not included in working capital - Answer Short-term debt Balance sheet $ amount question - Answer $300,000 Which of the follow...