Financial Analysis Exam 1 MODULE 1-3
QUESTIONS AND CORRECT DETAILED ANSWERS
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Terms in this set (145)
MODULE #00
The Annual Report PR document sent out to shareholders. Has the
From 10-k within.
Form 10-K official financial statements
3 Financial Statements • balance sheet
• income statement
• statement of cash flows
*backward looking
Where do you find the financial SEC in the EDGAR database
statements?
The balance sheet is a _______ time. single point in
,The Balance Sheet Identity: Assets = Liabilities + Stockholders' Equity
• Assets: things we own
• Liabilities: $ we owe people
• Stockholder's Equity: $ the owner's have given us
Liquidity how quickly we can convert an asset into cash
without a significant loss of value
(ex. convert house into cash, selling it for what it's
worth to not lose value)
Assets *decreasing liquidity
Current Assets (short-term):
• Cash and Equivalents
• Accounts Receivable ($ our customers owe us)
• Inventories
• Other
Fixed Assets (long-term):
• Property, Plant, Equipment (PPE)
• Net Property, Plant, Equipment
• Intangible Assets and Other (value of patents and
trade marks)
*don't expect to convert into cash or sell within the
coming years
, Liabilities & Stockholder's Equity Current Liabilities:
*expect to pay within the year
• Accounts Payable ($ we owe our suppliers)
• Notes Payable (loans due in the next year. paying
interest)
• Accrued Expenses ($ we owe but haven't paid. ex.
owe employee salary but have not paid them yet)
Long-Term Liabilities:
*have to pay but NOT within in the coming year
• Deferred Taxes
• Long-Term Debt (portion due this year is short
term. the debt NOT due this year is long-term)
Stockholders' Equity:
*owners portion
• Preferred Stock
• Common Stock ($ that owners originally gave us
when we first sold equity/initially sold shares of
stock)
• Capital Surplus (mix of debt & equity. borrowed $
that determines how the firm is paying for its assets)
• Accumulated Retained Earnings ($ the company
has earned but not paid to shareholder's.
reinvested back into the firm)
◦ 1) dividends: send $ back to shareholder's
◦ 2) reinvest into company
*company has to pay taxes them debt holders
THEN $ goes to shareholders/owners
Market Value price you can buy/sell the asset for in the market
today
QUESTIONS AND CORRECT DETAILED ANSWERS
| ALREADY SCORED A+ | NEWLY UPDATED
Save
Terms in this set (145)
MODULE #00
The Annual Report PR document sent out to shareholders. Has the
From 10-k within.
Form 10-K official financial statements
3 Financial Statements • balance sheet
• income statement
• statement of cash flows
*backward looking
Where do you find the financial SEC in the EDGAR database
statements?
The balance sheet is a _______ time. single point in
,The Balance Sheet Identity: Assets = Liabilities + Stockholders' Equity
• Assets: things we own
• Liabilities: $ we owe people
• Stockholder's Equity: $ the owner's have given us
Liquidity how quickly we can convert an asset into cash
without a significant loss of value
(ex. convert house into cash, selling it for what it's
worth to not lose value)
Assets *decreasing liquidity
Current Assets (short-term):
• Cash and Equivalents
• Accounts Receivable ($ our customers owe us)
• Inventories
• Other
Fixed Assets (long-term):
• Property, Plant, Equipment (PPE)
• Net Property, Plant, Equipment
• Intangible Assets and Other (value of patents and
trade marks)
*don't expect to convert into cash or sell within the
coming years
, Liabilities & Stockholder's Equity Current Liabilities:
*expect to pay within the year
• Accounts Payable ($ we owe our suppliers)
• Notes Payable (loans due in the next year. paying
interest)
• Accrued Expenses ($ we owe but haven't paid. ex.
owe employee salary but have not paid them yet)
Long-Term Liabilities:
*have to pay but NOT within in the coming year
• Deferred Taxes
• Long-Term Debt (portion due this year is short
term. the debt NOT due this year is long-term)
Stockholders' Equity:
*owners portion
• Preferred Stock
• Common Stock ($ that owners originally gave us
when we first sold equity/initially sold shares of
stock)
• Capital Surplus (mix of debt & equity. borrowed $
that determines how the firm is paying for its assets)
• Accumulated Retained Earnings ($ the company
has earned but not paid to shareholder's.
reinvested back into the firm)
◦ 1) dividends: send $ back to shareholder's
◦ 2) reinvest into company
*company has to pay taxes them debt holders
THEN $ goes to shareholders/owners
Market Value price you can buy/sell the asset for in the market
today
