Weeks 3-4

Question 1

3 statements

Answer 1

1. Finacial Position (Balance Sheet)
2. Comprehensive Income (Income statement)
3. Cash flows

Question 2

Accounts payable vs accounts recievable

Answer 2

Payable: What you owe
Recievable: What is owed to you

Question 3

Current Assets

Answer 3

Assets that will be converted to cash in 1 year

Question 4

ACCOUNTINF FORMULA

Answer 4

Assets= Liabilities+Owners Equity

Question 5

Revenue

Answer 5

Price * Quanitity

Question 6

Cost of Goods Sold

Answer 6

production costs for each good
or
cost of purchasing a product

Question 7

Gross Profit

Answer 7

Revenue-cogs

Question 8

Operating Expenses

Answer 8

Ongoing business expenses not tied to sales volume/Production

Mortgage, Rent, Salaries

Question 9

Net income from operations?

Answer 9

Gross Profit-Operating Expenses

Question 10

Net income from operations- Taxes&Interest

Answer 10

EBT!!!

Question 11

EBITDA

Answer 11

Earning Before Interest Tax Depreciation Ammortization

Question 12

Net income or loss

Answer 12

EBT-Income Tax

Question 13

How to go from EBITDA to EBT

Answer 13

EBT= EBITDA- Interest + CCA

Question 14

CCA

PLZ GET A PROPER DEFINITION

Answer 14

Capital Cost Allowance

Question 15

Acronym for the typical structure of balance sheet

Rain
Cant
Grow
Oranges
Noah
Tell
Nancy

Answer 15

Revenue
-COGS

Gross profit
-Operating Expenses

Net income from Operations
-Tax

Net Income

Question 16

Financial Ratio

Answer 16

$1 mil is a great profit for some companies while absolutely horrible for others,

Ratios used to measure diff aspects of companys performance

Question 17

3 financial ratios

Answer 17

1. Debt-to-equity
2. Return on sales
3. Current Ratio

Question 18

Cash helper formula

Answer 18

Cash= cash in- cash out +non cash charges

Cash= (Liabilities + Equities) - (Non current assets + sum current assets EXCEPT CASH!)

Question 19

Profit Margin

Answer 19

Net Profit/ Revenue

Question 20

Tax

Answer 20

=IF(EBT>0, EBT*TAX RATE, 0)

Question 21

Basic profit formula

Answer 21

Revenue-Costs

Question 22

GST Collected

Answer 22

Revenue *GST rate

Question 23

GST Paid

Answer 23

=Sum(expenses specified)*GST rate

Question 24

GST Payable

Answer 24

GST Collected- GST Paid

Question 25

Credit Card Questions

Answer 25

Credit Card charge * Revenue * custerms using credit card%

NOTE: if not given customers using credit card % then exclude this

Question 26

WHEN CALCULATING FOR BUSINESSES OFTEN WHAT?

Answer 26

HAVE TO MULTIPLY YOUR EXPENSES BY % (OF CUSTOMERS USIGN CARD, OF HOUSE USED FOR BUSINESS)

Question 27

How relevant is income statement

Answer 27

1 year

Question 28

WHAT IS GST NOT

Answer 28

PROFIT