accounting bootcamp Flashcards
Which of the following items would be recorded as an asset on a company’s balance sheet?
Inventories ready to be sold
A balance sheet reports the status of a business:
At a point in time
When a sale is made on credit, which of the following balance sheet accounts is likely to change?
Inventories, receivables and retained earnings
structure of income statement
revenue
COGS
gross profit
SG&A
operating profit
interest/ financecost
profit before taxes
tax cost
profit after tax/ net income
Define SG&A
Sales and general administration expenses
what is working capital?
current assets-current liabilities
it is used for the day to day trading operations
current assets> current liabilities=
what does financial assets include?
cash, short term monetary instruments, current operational assets( inventories, receivables)
where do you get D&A?
CFS
What do you remove to get normalized EBIT and EBITDA?
non recurring income and expenses
what are current assets?
long term assets intended to be held for more than one year.
strategic assets
mainly: PP&E( plant property and equipment)
intangible assets
financial asssets
other
Equity investment includes
it is provided by shareholders
permament capital
voting rights
influence and control
higher risk
what does debt include
it is provided by the investors ( lendders)
borrower must pay
bonds and loans
lower risk
