Line Items Flashcards
Cash
(Asset) - Self-explanatory, just like cash you have sitting in the bank
Short-Term Investments
(Asset) - Almost as liquid as cash, but not exactly. This includes things like money market accounts, CDs, etc.
Inventory
(Asset) - Items that have already been produced, but haven’t yet been sold
Accounts Receivable
(Asset) - The company has sold items but hasn’t yet been paid for them. It’s been recorded on the income statement but is like an IOU from the customer
Prepaid Expense
(Asset) - The company has paid for expenses in cash, but hasn’t yet recognized them as cash on the Income Statement
PP&E
(Asset) - Any factories, warehouses, offices, land that has long term (greater than one year) value and contributes to the Company’s core business
Intangible Assets
This includes things like trademarks, patents and other intellectual property
Goodwill
(Asset) - When a company acquires another company and pays a premium over the book value of the shareholders’ equity
Long-Term Investments
(Asset) - These are investments that are longer term and less liquid than short term investments but aren’t PP&E
Revolver
(Liability) - This is a line of credit. A company can borrow and then pay off the debt at any time. Think of it as a credit card for companies
Accounts Payable
(Liability) - The company has received items, but hasn’t yet paid for them
Deferred Revenue
(Liability) - The company has collected cash from customers for services that will be delivered over time (think a subscription you pay up front for an entire year)
Accrued Expenses
(Liability) - These expenses are recorded on the income statement but hasn’t yet paid them in cash. These are typically recurring expenses like rent, salaries
Deferred Tax Liability
(Liability) - The company has paid less cash taxes than it actually owes and will have to make it up by paying additional taxes to the government in the future
Long-Term Debt
(Liability) - This is an amount of debt that matures in more than a year
Common Stock and Additional Paid In Capital
(Equity) - This is the market value of the shares of stock when they were issued by the company, not the market value at the current time
Treasury Stock
(Equity) - This is the total value of shares that the company has repurchased from investors, at the value for which they were repurchased, not their current value
Retained Earnings
(Equity) - This is the company’s cumulative net income minus any dividends that have been paid to equity investors
