D366 Study Guide Question and answers rated A+
2025/2026
assets, liabilities, owner's equity
Balance Sheet
reports amount of net income earned
Income Statement
during a period. excess of revenues over
Net Income
4. Statement of Cash Flow Reports amounts of cash collected and paid out during
expenses
operating, investing, and financing activities.
5. capital stock an owner purchased stock. also known as paid in
capital and contributed capital
6. retained earnings net income that has not been paid back in dividends.
7. capital stock aka paid in capital or contributed capital. an owner
buys stock
8. accounting equation assets=liabilities+equity. can always calculate a missing
fig-
ure if you have 2 others.
9. components of the why the
income statement
10. Income statement: net
income helps explain...
11. components of the cash
flow statement
12. what statement contains a
de-tailed explanation of
,describes companies financial performance
for a period of time. Sales/Revenue, COGS,
operating expenses, operating income,
gains, losses, taxes, resulting in net
income.
changes in retained earnings between 2
balance sheet dates
operating(any activity on the income
statement), invest-ing(related to the firm
investing in itself, equipment pur-chases
etc) financing(buying/selling your stock,
creditors lending you money)
the cash flow statement
, D366 Study Guide
Study online at https://quizlet.com/_ed31w1
balance sheet cash amount
changed?
13. what statement explains income statement
changes in retained
earnings on the balance
sheet?
accounting adjustments applied to cash flow data
14. cash from operations on
the statement of cash flow
is trans-formed into net
income through what?
15. current ratios liquidity ratios- measures firms ability to pay current
liabil-ities with assets that should be converted to
cash within 1 year.
current assets divided by current liabilities
16. debt ratios measures level of debt burden and leverage that a
company has. ratio should be below .5-.6.
total liabilities divided by total assets
17. ROE dollars of profit generated compared to owners
investment. similar to an interest rate the owners
are earning on their investment.
net income divided by owners equity
18. equity total assets-total liabilities
19. ROA measures the profits the firm is generating on its
asset. sim-ilar to an interest rate the company is
earning by investing its asset in the business.
net income divided by total assets
20. asset turnover ratio
2025/2026
assets, liabilities, owner's equity
Balance Sheet
reports amount of net income earned
Income Statement
during a period. excess of revenues over
Net Income
4. Statement of Cash Flow Reports amounts of cash collected and paid out during
expenses
operating, investing, and financing activities.
5. capital stock an owner purchased stock. also known as paid in
capital and contributed capital
6. retained earnings net income that has not been paid back in dividends.
7. capital stock aka paid in capital or contributed capital. an owner
buys stock
8. accounting equation assets=liabilities+equity. can always calculate a missing
fig-
ure if you have 2 others.
9. components of the why the
income statement
10. Income statement: net
income helps explain...
11. components of the cash
flow statement
12. what statement contains a
de-tailed explanation of
,describes companies financial performance
for a period of time. Sales/Revenue, COGS,
operating expenses, operating income,
gains, losses, taxes, resulting in net
income.
changes in retained earnings between 2
balance sheet dates
operating(any activity on the income
statement), invest-ing(related to the firm
investing in itself, equipment pur-chases
etc) financing(buying/selling your stock,
creditors lending you money)
the cash flow statement
, D366 Study Guide
Study online at https://quizlet.com/_ed31w1
balance sheet cash amount
changed?
13. what statement explains income statement
changes in retained
earnings on the balance
sheet?
accounting adjustments applied to cash flow data
14. cash from operations on
the statement of cash flow
is trans-formed into net
income through what?
15. current ratios liquidity ratios- measures firms ability to pay current
liabil-ities with assets that should be converted to
cash within 1 year.
current assets divided by current liabilities
16. debt ratios measures level of debt burden and leverage that a
company has. ratio should be below .5-.6.
total liabilities divided by total assets
17. ROE dollars of profit generated compared to owners
investment. similar to an interest rate the owners
are earning on their investment.
net income divided by owners equity
18. equity total assets-total liabilities
19. ROA measures the profits the firm is generating on its
asset. sim-ilar to an interest rate the company is
earning by investing its asset in the business.
net income divided by total assets
20. asset turnover ratio
