FinStat- Statement Analysis

Question 1

Debit

Answer 1

Soll

Question 2

Credit

Answer 2

Haben

Question 3

Trial Balance

Answer 3

Summen- und Zahlenliste

Question 4

Income Statement

Answer 4

GuV

Question 5

Balance Sheet

Answer 5

Bilanz

Question 6

Accounts Payable

Answer 6

Verbindlichkeiten

Question 7

Accounts Receivable

Answer 7

Forderungen

Question 8

Balance sheet accounts

Answer 8

Equity, Assets, Liabilities

Question 9

Balance sheet accounts

Answer 9

Equity, Assets, Liabilities

Question 10

Assets=

Answer 10

Liabilities& Equity

Question 11

Assets=

Answer 11

Liabilities& Equity

Question 12

Drawing

Answer 12

Private Geldentnahme

Question 13

Income Statement Accounts

Answer 13

Revenue, Expenses

Question 14

Revenue

Answer 14

Umsatzerlöse

Question 15

Expenses

Answer 15

Ausgaben

Question 16

Expenses

Answer 16

Ausgaben

Question 17

Gross profit

Answer 17

Revenue - Cost pf Revenue

Question 18

Net income

Answer 18

Operating profit - interests - taxes

Question 19

Faithful Representation Cycle

Answer 19

Data need to be complete, neutral and free from material error
-> reliable

Question 20

Cost Principle

Answer 20

Record all assets and liabilities at their actual cost on the date of acquisition (historical cost)

Question 21

Going Concern Assumption

Answer 21

Assume the company will remain in operation for the foreseeable future

Question 22

The Time Period Concept

Answer 22

Business Activities can be sliced into segments and financial statements can be prepared for specific periods

Question 23

The Revenue Recognition principle

Answer 23

Revenue should be recorded when it has been earned

Question 24

Sources of regulation

Answer 24

Legislation, Stock Exchange Rules, Accounting Standards

Question 25

Consolidated Statement ot Financial Positions

Answer 25

Balance Sheet

Question 26

Goodwill

Answer 26

Premium paid by an investor when investing in another company
Goodwill= Purchase Price- fair value of net assets

Question 27

Consolidated Financial Statements

Answer 27

Of whole group
-> prepared by consolidating the individual entities reports

Question 28

Non-controlling assets

Answer 28

Minority interests
-> shares others have in a subsidiary

Question 29

Deferred Taxes

Answer 29

Temporary Differences between the Income Statement and the IRS tax return

Question 30

Income Statement Formats

Answer 30

Classification by nature and Classification by function

Question 31

Balance Sheet Format

Answer 31

Vertical or Horizontal

Question 32

Conprehensive Income

Answer 32

Profit& Loss + OCI

Question 33

Content of OCI

Answer 33

Currency Translation
Changes in value of Cashflow Hedges
Revaluation of assets
Defined Benefit Plan

Question 34

Assets and Liabilities presented in order of….

Answer 34

Their liquidity

Question 35

Statement of changes in equity

Answer 35

• profit and loss
  -OCI
  -owners transaction
  Adjustments

Question 36

Cash Flow Statement

Answer 36

How cash flows in and out of the company for a certain period of time

Question 37

Cash Flow Types

Answer 37

-Operating
- Investing
- Financing

Question 38

Net Cash Flow

Answer 38

Change in Cash Position

Question 39

Goal of financial analysis with ratios

Answer 39

Make companies comparable

Question 40

Limitations of Financial Analysis

Answer 40

• Completeness
• Historic Information
• Compatability (differences, e.g. because of Accounting Policies