Module 1 Flashcards
What is a 10-K?
Audited annual report that includes the four financial statements
What is a 10-Q?
Unaudited quarterly report that includes summary versions of the four financial statements
What are the four financial statements?
Balance Sheet, Income Statement, Statement of Stockholders’ Equity, Statement of Cash Flows
What is a Balance Sheet?
Reports a company’s financial position at a point in time. It reports the company’s resources (assets) and sources of financing.
What ways can a company finance assets?
Shareholders - owner financing, Banks/Creditors - nonowner financing
What is the accounting equation?
Assets = Liabilities + Equity
What are short-term assets?
Goods that the company intends to sell to its customers. Can be converted into cash in a short period of time.
What are long-term assets?
Assets such as property, plant and equipment.
What is an Income Statement?
Reports on a company’s performance over a period of time and lists amounts of revenues (sales) and expenses. Yields Net Income.
What are input markets?
Involves suppliers and labor and generate expenses such as inventory, salaries, materials, and logistics.
What are output markets?
Involves customers and generates revenue or sales. Can also generate some expenses such as marketing and services to customers.
What is the Statement of Stockholders’ Equity?
Reports on changes in key types of equity over a period of time.
What is included on the Statement of Stockholders’ Equity?
Contributed capital, Retained Earnings, Other
What is the Statement of Cash Flows?
Reports the change in a company’s cash balance over a period of time via inflows and outflows.
What is included in the Statement of Cash Flows?
Operating, Investing, Financing = Net Change in Cash + Beginning Year Cash = Ending Year Cash
