Present financial information Flashcards
Do companies submit documents describing their financial position?
Yes, they submit financial statements
It’s the money spent to operate a business (e.g., rent, salaries)
The overhead
It’s the money the organization owes in loans to others
This is called notes payable
It’s the loan used to buy property, real estate
This is a mortgage
What do you know about your company’s financial position?
What I know is that they are financially stable.
Do you know where to find financial statements for your company?
The accountant is the person in charge of those things in the company
Does your company have any mortgage payments?
Yes, they are paying for the property in Cerritos
The three most important financial statements are:
the Balance Sheet, the Cash Flow Statement, and the Income Statement
The Income Statement is also called
Profit and Loss (P&L) Statement or Statement of Income / Earnings
Cash and items the company owns that can be sold for cash (such as inventory, stocks, land, equipment)
They are assets
What the company owes to others (such as accounts payable, loans, salaries payable)
They’re liabilities
If I have made a 20% down payment on my home, do I own it?
Not really. I’d have 20% home equity.
Owners’, shareholders’ interest in a company (their investment plus share of profit)
That’s equity
Money that is spent
These are expenditures or outgoings (UK)
What happens if your expenditures are greater than your income?
You will be in debt.
