Week 2 Flashcards
Income statement
Revenues - Expenses = Net Income ( for that certain Period)
Result from Operating Activities
Revenues (sales, service rendered, etc)
- Operating Expenses (cost of goods sold, salaries, external
services, impairment, amortisation, depreciation, etc)
Financial Results
Finances Income (dividends, marketable securities, etc) - Finance Expenses (interest, changes in fair value, etc.)
Revenue
Revenue is the price charged for providing goods or services
* Revenues are earned when the good or service is provided
* Regardless of when payment is received
Expenses
Expenses are the cost of the goods and services used in the process of generating revenues
* Expenses are incurred when the good is consumed or a service is used
* Regardless of when payment is made
BALANCE SHEET
-ASSETS
-NET EQUITY
-LIABILITIES
Relation Assets, Net Equity, Liabilities
A = NE + L
Assets
goods, rights and other resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the company.
Liabilities
present obligations of the company arising from past events, the settlement of which is expected to result in an outflow of resources from the company embodying future economic benefits.
Net Equity
the residual interest in the assets of the company after deducting all its liabilities. Equity includes contributions made by equity holders or owners upon incorporation of the company or subsequently that are not considered as liabilities, as well as retained earnings and cumulative losses or other related variations.
Balance sheet structure
(See files)
Current assets
Inventories
Receivables
Cash & equivalents
Non-current assets
Intangible Assets
Tangible Assets
Financial Assets
Non-Current Liabilities
Long term loans
Mortgages
Long term tax liabilities
Current Liabilities
Debts or payables due typically in 1 year
Payables to Vendors
Tax payables
Short term debt
