Accounting and Finance CHP 3

Question 1

Statement of financial position

Answer 1

provides a snapshot of a companys financial condition at a specific point in time Assets = Liabilities + Equity

Question 2

Book Values

Answer 2

is the value of a companys assets as recorded on the balance sheet, based on historical costs minus deprciation

Question 3

Market value

Answer 3

is the current price of a company’s stock as determined by supply and demand in the stock market

Question 4

Income Statement

Answer 4

financial report that shows a companys revenue, expenses and profits or losses over a specific time period, proviedes insight into a compnay financial performance and profitability

Question 5

Profit

Answer 5

also known as net income, is the amount a business earns after subtracting all expenses from revenue

Question 6

Cash Flow

Answer 6

the movement of money in and out of a business that comes from core business activities, asset purchases or sales, loans, stocks or dividends

Question 7

Taxes

Answer 7

coporate taxes = federal taxes (15%) + provincial tax (11.5%)

personal tax (29%)