BS & CF Flashcards
All assets are liquid at some price-> T or F. Explain
True. High liquidity - good -> short-term debt.
Add assets be quickly converted to cash or near market value is IMP
Why revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period?
The recognition and matching principles- Book value
Accural.
It’s the way accountants have chosen to do it.
In SoCF, what does the bottom line number mean? How useful is this number for
analyzing a company?
show change in cash flow. Not so useful T.T
How do financial cash flows and the accounting statement of cash
flows differ? Which is more useful for analyzing a company?
main different: interest.
accounting: operating cash flow
real: choice of debt and equity
chose SoCF -> treatment of interest
L>A => E< 0. Happen??? Why?
market value <0
CFA < 0 not bad for a period. Why?
capital outlays is large -> CFA<0
money spend wisely
OCF < 0 not bad. Why?
not bad for star-ups. Bad for normal company
NWC<0
a large cash outlay as a result of a large purchase of products and services from its vendors.
NWC=?
STA-STD
EBIT=?
rev-cogs-De
ASS: S, C, De, Ie==> NI=?
- Ebit
- Ebt= ebit - ie
- T=ebt. Tax rate
- ni=ebt-t
NI=?
div+ADD to RE
AVTR=?
MTR=?
AVTR=Tax paid by div/ TI
MTR= số cuối liên quan tới thu nhập của bảng tax
OCF=?
OCF=CFA-CFI
=EBIT+ De-taxes
=
NCS=?
NCS=NFA end - NFA beg + De
