| What does GAAP stands for? | Generally Accepted Accounting Practice |
| What is the other name as the P&L? | Income Statement |
| Name the 3 financial statements? | 1) Income Statement
2) Balance Sheet
3) Cash Flow Statement |
| What is the difference of a Calendar Year and Fiscal Year? | Calendar Year is Jan - dec
Fiscal Year is any 12 months |
| Revenue - Cost of Revenue (COGS) = ? | Gross Profit |
| Gross Profit - Expenses = ? | Operating Revenue |
| What does SG&A stands for? | Sales, General Expenses and Admin |
| Operating Revenue - Taxes = ? | Net Income / The Bottom line |
| What is the Income Statement? | It is a year at a glance |
| If the Income statement is "a year at a glance" of the company, what is the balance sheet? | The Balance Sheet is like the Entire Health of a company |
| What does the Balance Sheet documents? | it documents the AGGREGATED Wealth of a company |
| Give one other word for a Balance Sheet? | Statement of Financial Position |
| What does the Balance balance? | Assets = Liabilities + Owner Equities |
| Give 7 examples of Assets? | 1) Cash / Cash Equivalent
2) Receivables
3) Inventories
4) Equipment
5) Building & Lands
6) Intangibles
7) Intellectual Property |
| There are 2 ways to list Assets. What are they and what are the difference | 1) Current Assets - Can be converted into cash in 12 months or less
2) Non - Current Assets - Useful asset with a life of more than a year (illiquid) |
| Give 4 examples of Liabilities? | 1) Payable
2) Mortgages
3) Debt
4) Taxes |
| How can Liabilities be listed and what is the difference? | Current Liabilities: Thoses due within 1 year
Non Current Liabilities: Those dues in more than a year |
| What is Equity )min. 2)? | 1) It is the book value of the company
2) It is what the amount of cash the shareholders would receive after all assets sold and all liabilities paid
3) It is the left over for the shareholders if the company was liquidated |
| How many types of Equity there is and what are they? | 1) Capital Stock (Initial Investment)
2) Paid in Capital
3) Retained Earnings |
| What is Capital Stock? | Initial Value assigned to the share at creation |
| What is another word for Initial Value? | Par Value |
| What is often the Initial Value / Par Value amount per share at creation? | $0.1/share |
| What is Paid In Capital? | Additional Monies collected above par value (initial value) from selling stock to fund the company |
| What are Retained Earning? | Net Income ACCRUED after dividends since the company existence |
| What should be the Retained Earnings doing ideally? | They should be increasing |
| What is another word for Shareholder Equity? | Book Value of the company? |
| What is another word for the Book Value of the company? | The Shareholder Equity |
| Give an example of treasury stocks? | Buy Backs |
| What does the cash flow statement tracks? | ti tracks the use of cash during the same year period as the Income Statement |
| How many sections are there in the Cash Flow Statement and what are they? | 1) Operating Cash Flow
2) Investing Cash Flow
3) Financing Cash Flow |
| What does the Income Statement determine (2 things) ? | 1) The income the company must report for tax purpose
2) Show the Net Income after taxes |
| What are the 2 things the Cash Flow Statement shows? | 1) Where the cash was spent
2) Reports the start / finish change in cash |
| Explain the 3 different types of cash flow? | 1) Operating Cash flow - Operation of the company
2) Investing Cash flow - Long term asset (building, cars...)
3) Financing Cash flow - Bank loans for investment |
| What is Common Stock Payment? | Buy Backs |
| Give 3 examples of what to find in Financing Cash flow? | 1) Repayment or Issuance of debt
2) Common Stock Payments (buy back)
3) Cash dividends paid |
