Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Securities - IAD > Company Financial Statements > Flashcards

Company Financial Statements Flashcards

You may prefer our related Brainscape-certified flashcards:
SIE Exam flashcards
1
Q

What is a company’s Balance Sheet (Statement of Financial Position)?

A

A snapshot of a company’s financial position at a particular moment in time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a company’s Income Statement (Statement of Profit and Loss)?

A

Summarises the amount of income earned by a company and the expenditure incurred by that company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a company’s Statement of Cash Flows?

A

A summary of all payments and receipts that have occurred over the course of the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

[Balance Sheet] What are non-current assets?

A

Assets in long-term continuing use by the company.
They represent the major investments from which the company hopes to make money.
They are categorised as tangible or intangible.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

[Balance Sheet] What are current assets?

A

Assets purchased with the intention of resale or conversion into cash usually within a year. Eg. inventory, cash balances.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

[Balance Sheet] What are tangible non-current assets?

A

Assets that have physical substance, such as land, buildings and machinery.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

[Balance Sheet] What are intangible non-current assets?

A

Assets without physical substance that are expected to generate future revenue. Eg goodwill, trademarks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is included in the Top Half of the Balance Sheet (statement of financial position)?

A

Assets (non-current & current)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is included in the Bottom Half of the Balance Sheet (statement of financial position)?

A

Equity and Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a company’s share capital?

A

Nominal value of total shares in issue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a company’s Share Premium?

A

The capital that a company raises upon issuing shares that is in excess of the nominal value of the shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

[Balance Sheet] What are Current Liabilities?

A

Amount owed by the company and due within a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

[Balance Sheet] What are non-current Liabilities?

A

Amount owed by the company and due after a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the contents of a Statement of Profit and Loss (Income Statement)?

A

Revenue
Cost of sales
Operating Costs
Profit before tax
Capital v Revenue Expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What 3 sections is the the Statement of Cash Flows broken down into?

A
  1. Operating cash flow
  2. investing activities
  3. Financing activities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

At what point is revenue recognised?

A

Recognised at point of sale

17
Q

At what point is cash recognised?

A

Recognised at point of receipt

18
Q

What is in the top and bottom halves of the Balance Sheet?

A

Top: Assets

Bottom: Capital, Reserves, Liabilities

19
Q

What is in the top and bottom halves of the Income Statement?

A

Top: Revenue in, Revenue out

Bottom: Profit/Loss

20
Q

What is in the top and bottom halves of the Statement of cash flows?

A

Top: Cash in, Cash out

Bottom: Net Cash Flow

21
Q

Within the Balance Sheet, what are the Reserves?

A

The amount belonging to shareholders that is retained by the company

22
Q

Define cost of sales

A

Costs directly associated with the cost of producing a product or service

23
Q

What is the Return on Capital Employed (ROCE)?

A

The best ratio for measuring overall management performance

It looks at what returns have been generated from the total capital employed in a company, including debt as well as equity

ROCE = Operating Profit / Capital Employed

24
Q

What is the effect on the below for a company undergoing a Bonus Issue:

Share price:
Number of shares:
Nominal Value:
Share Capital Account:
Share Premium Account:

A

Share price: Reduced
Number of shares: Increased
Nominal Value: Stays the same
Share Capital Account: Rises
Share Premium Account: Falls

25
Q

What is the effect on the below for a company undergoing a Stock Split:

Share price:
Number of shares:
Nominal Value:
Share Capital Account:
Share Premium Account:

A

Share price: Reduced
Number of shares: Increased
Nominal Value: Reduced
Share Capital Account: Stays the same
Share Premium Account: Stays same

26
Q

What is the contents of a Balance Sheet?

A

Assets (current & non-current)
Share Capital
Liabilities (current & non-current)
Reserves
Retained Earnings

27
Q

What are Pre-payments

A

Current assets within the Balance sheet. They are payments made in advance of the Balance Sheet date.

Securities - IAD (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions