Financial Reporting and Analysis Flashcards
Assets
Resources controlled by an enterprise as result of past events and from which future economic benefits to the enterprise are expected to follow
Balance Sheet
The fs that presents an entities current financial position by disclosing assets liabilities and equity at a point in time
Depreciation
The process of systematically allocating the cost of long-lived tangible assets to the period which the assets are expected value to proved economic benefits
Diluted Shares
The number of share that would be outstanding if all potentially dilutive claims on common shares were exercised
Equity
Assets less liabilities; the residual interest in assets after subtracting liabilities
Expenses
Outflows of economic resources or increases in liabilities that result in decreases in equity (other than decreases because of distributions to owners); reduction in net assets associated with the creation of revenues
Financial flexibility
The ability to react and adapt to financial adversity and opportunities
Financing Activities
Activities related to obtaining or repaying capital to be used in the business
Investing Activities
Activities associated with the acquisition and disposal of pp&e and other long-term assets; and both long and short term investments in the equity and debt issued by companies
Liabilities
Present obligations of an enterprise arising from past events
Liquidity
The ability to purchase or sell an asset quickly and easily at a price close to fair market value. The ability to meet short-term obligations using assets that are most readily converted into cash
Operating Breakeven
Number of units produced where revenues = operating expenses
Owners equity
The excess of assets over liabilities; the residual interest of shareholders in the assets of an entity after deducting the entities liabilities
P&L
A fs that provides information about a companies profitability over a stated period of time
Revenue
The amount charged for the delivery of goods or services in the ordinary activities of a business over a stated period; the inflows of economic resources to a company over a stated period
