Balance Sheet

Question 1

What are the 3 ‘basic’ profit measures on the P&L?

Answer 1

Gross Profit, Operating Profit, Net profit

Question 2

What 3 things does the P&L statement capture or report for a given period of time?

Answer 2

Expenses
Profits
Revenue Streams

Question 3

What two things can a company do with the Net Income at the end of the year?

Answer 3

Distribute it to the stock holders

Increase it - keep it up

Question 4

One of the bridges from the PL to the Balance Sheet

Answer 4

retained earnings

Question 5

Every year your Net Profit (on the P&L) it is accumulated as Retained Earnings on the ?

Answer 5

Balance Sheet

Question 6

What a business owns minus what a business owes is known as what on a balance sheet?

Answer 6

Equity

Question 7

What does a balance sheet tell a business and how is it used ?

Answer 7

It tells a business their total assets, total liabilities, and the share holders equity
The total assets should balance with the total liabilities and share holders equity
(it has to balance)