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Question 1

Wat is een financial statement

Answer 1

Written records that convey the business activities and the financial performance of an entity
Provide a snapshot of a corporation’s financial health at a particular point in time

Question 2

Are all companies required to give financial information

Answer 2

Privately companies in the US don’t

Question 3

Wat is een balance sheet

Answer 3

Financial snapshot of what a
company owns and what it owes, as
well as the amount invested by
shareholders

Question 4

Waaruit bestaat de balance sheet

Answer 4

Assets: current + non current assets
liabilities: current + non current liabilities
Shareholder’s equity: share capital (total money of shares) + retained earnings

Question 5

Wat zijn current assets en waaruit bestaat het

Answer 5

Current assets: assets that a company expects to convert into cash, sell, or use up within one year for example:
1: Cash and cash equivalents: Immediate liquid assets like currency or bank account balances.
2: Accounts receivable: Money owed to the business by customers for goods or services already delivered.
3: Inventory: Goods that are held for sale or manufacturing materials.
4: Prepaid expenses: Payments made in advance for services or goods to be received in the future, such as insurance premiums or rent.

Question 6

Wat zijn non current assets

Answer 6

Long-term assets: assets that a company expects to hold for more than one year for example:
1. Property, Plant, and Equipment (PP&E): Tangible fixed assets like buildings, machinery, and land.
2. Intangible assets: Assets that lack physical form but have value, such as patents, trademarks, goodwill, and copyrights

Question 7

Wat zijn current liabilities

Answer 7

Current liabilities: obligations or debts that a company must settle within one year or within for example:
1. Accounts payable: Money the company owes to suppliers for goods or services it has received but not yet paid for.
2. Short-term debt: Any borrowings or loans that are due to be repaid within a year.
3. Accrued expenses: Expenses that have been incurred but not yet paid, such as wages payable or taxes payable.
4. Current portion of long-term debt: The part of long-term debt that is due within the next year.

Question 8

Wat zijn non current liabilities

Answer 8

Long-term Liabilities: obligations or debts that a company is not required to pay off within the next year for example:
Long-term debt: Loans or bonds that are due in more than one year, such as mortgages, corporate bonds, or bank loans

Question 9

Wat is networking capital

Answer 9

Difference between current assets and current liabilities

Question 10

Hoe bereken je de revenue

Answer 10

money from selling goods – allowances (refunds customers get after sales) and discounts
Revenue= sales x price

Question 11

Hoe bereken je gross profit

Answer 11

Gross Profit = Revenues – COGS (Costs Of Goods Sold)

Question 12

Wat zijn selling expenses SG&A expenses

Answer 12

Marketing, Advertising, and Promotion Expenses
SG and A expenses are selling general and administartice expenses together

Question 13

Hoe bereken je EBITDA (Earnings before Interest Taxes Depreciation and Amortization)

Answer 13

EBITDA (Earnings before Interest Taxes Depreciation and Amortization) = Gross Profit – SG&A Expenses

Question 14

Wat is Depreciation & Amortization Expense

Answer 14

Costs associated with allocating the value of an intangible asset over a specified period like patents or copyright

Question 15

Hoe bereken je EBIT (Earnings before Interest and Taxes)

Answer 15

EBIT (Earnings before Interest and Taxes) = EBITDA – D&A Expense

Question 16

Wat is interest

Answer 16

Cost of borrowing money loans

Question 17

How bereken je net income

Answer 17

Net Income = EBIT – Interest – Taxes

Question 18

Hoe bereken je de after tax operating income

Answer 18

EBIT but after the taxes but before the interest so you subtract the taxes but not the interest

Question 19

Welke verschillende type costs zijn er

Answer 19

Direct costs: Costs of the production of the product or service (reported as COGS)
Variable costs: Costs that fluctuate depending on the volume for example materials or direct labor expense (work)
Fixed costs: Costs that don’t fluctuate with the volume for example machinery
Indirect costs: Costs that are not used for the production of the product (reported as SG&A)
Variable: Electricity and gas, marketing
Fixed: Rent, insurance and supplies

Question 20

Wat is een cash flow statement

Answer 20

Acts as a bridge between the income statement and the balance sheet by showing how money (cash) moved in and out of the business

Question 21

Waaruit bestaat een cash flow statement

Answer 21

1: Cash flows from operating activities:
Includes transactions from all operational business activities, e.g., buying and selling inventory and supplies, along with paying employee salaries.
2: Cash flows from investing activities:
Is the result of investment gains and losses, e.g., buying and selling property and equipment (capital expenditures or CapEx).
3: Cash flows from financing activities:
An overview of cash used in business financing, e.g., money paid out as dividends or via share repurchases, loans taken out or paid back

Question 22

Wat is de direct en indirect method of presentation

Answer 22

Direct is money received - money paid for operating investing and financing activities
Indirect is net income and you add:
Depreciation expense;
Decrease in accounts receivable;
Decrease in inventory;
Increase in accounts payable

Question 23

Wat zijn drie technieken om financial statements te analyseren

Answer 23

Horizontal analysis: compares historical data to detect growth trends (common-base or trend analysis)
Amount in comparison year- amount in base year / amount in base year x 100%
Vertical analysis: compares financial statement items in relation to each other
Percentages of different parts of liabilities of total amount of liabilities
Ratio analysis: uses a combination of financial statements to assess a company’s financial condition and performance

Question 24

Track company performance could do this in 3 different ways

Answer 24

Intracompany: same company different years
Intercompany: different companies
Industry averages: compare a company with the average in the industry

Question 25

Wat is een andere manier om de net income te berekenen

Answer 25

Net income = Increase in retained earnings + Dividends

Question 26

Hoe bereken je return on capital

Answer 26

Return on capital= After tax operating income/ Long-Term Debt, Leases, and Shareholders’ Equity
After tax operating income: This is the profit a company makes from its operations after taxes, but before interest expenses are subtracted (because ROC focuses on operating efficiency, excluding financing costs).
NetIncome+InterestExpense×(1−TaxRate)

Question 27

Hoe bereken je de operating profit margin

Answer 27

Operating profit / revenue x 100%
OperatingProfit = Revenue−CostofGoods Sold(COGS)−OperatingExpenses

Question 28

Hoe bereken je Times interest earned

Answer 28

Ebit/ interest expense

Question 29

Hoe bereken je het cash coverage ratio

Answer 29

Ebit + depreciation / interest expense