Cashflow is King

Question 1

What is a 10K

Answer 1

Annual Report that’s audited

Question 2

What is MD+A

Answer 2

Management discussion and analysis of financial condition

Question 3

What is a 10Q

Answer 3

Quarterly - summarized and unauted

Question 4

What is an 8K

Answer 4

Filed within 4 days of an “Event”

Question 5

What is GAAP

Answer 5

General Accepted Accounting Principals

Question 6

Who is an accredited investor

Answer 6

More than $1M in net worth
More than 200k income for 2 years with positive futures

Question 7

What are the 5 accounting Principals

Answer 7

Materiality
Consistency
Conservatism
Matching
Historical Cost

Question 8

What is the materiality accounting principal

Answer 8

dont sweat the small stuff, but don’t ignore it either..

example: Apples Office supplies

Question 9

What is the consistency accounting principal

Answer 9

If you have a choice.. stick with it

Question 10

What is the conservatism accounting principal

Answer 10

the sky is falling, really

Question 11

what is the matching accounting principal

Answer 11

pair relative revenues and expenses within the same period… regardless of cashflow

Question 12

What are the big 3 financial statements

Answer 12

Balance Sheet
Income Statement
Cash Flow Statement

Question 13

How does a balance sheet “balance”

Answer 13

Assets = Liabilities + Equity

Question 14

What is working capital?

Answer 14

Cash, accounts receivable, inventory
minus
Accounts payable

Question 15

What are the basics of a Cashflow Statement?

Answer 15

Beginning cash
+/- cash from Operating
+/- cash from investing
+/- cash from Financing
Ending Cash

Question 16

What does “net ##” mean

Answer 16

The payment is due in ## period

Question 17

What is “5% 10, net 30” mean?

Answer 17

5% discount if paid in 10 days, or paid in full in 30