Financial Statements Integration: Balance Sheet, Income Statement & Cash Flow Relationships

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Finance - Personal Finance

michael1tekrzp Created by 10 mon ago

Cards in this deck(33)

What are the three major financial statements and what key information does each provide?

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Can you give examples of major line items on each of the financial statements?

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How do the three financial statements link together?

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If you could only use one financial statement to assess a company's health, which would it be and why?

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Which two financial statements would you use to assess a company's prospects and why?

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How does an increase in Depreciation by $10 affect the financial statements?

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Why does Depreciation, a non-cash expense, affect the cash balance?

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Where does Depreciation usually appear on the Income Statement?

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What happens when Accrued Compensation increases by $10?

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What happens when Inventory increases by $10, assuming it is paid with cash?

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Why is the Income Statement not affected by changes in Inventory?

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How are the three financial statements affected when Apple buys $100 worth of factories with debt?

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What happens to the financial statements after one year with a 10% interest rate and depreciation?

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What happens to the financial statements when the value of factories is written down to $0?

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What happens to the financial statements when Apple orders $10 of inventory using cash?

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What happens to the financial statements when iPods are sold for $20 revenue at a $10 cost?

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Could you ever end up with negative shareholders' equity and what does it mean?

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What is working capital and how is it used in financial analysis?

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What does negative working capital mean and is it always a bad sign?

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What happens on the financial statements when there's a $100 asset write-down?

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How does a $100 bailout affect the financial statements?

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What happens when a $100 debt writedown occurs on a company's balance sheet?

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When would a company collect cash from a customer and not record it as revenue?

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If cash collected is not recorded as revenue, what happens to it?

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What's the difference between accounts receivable and deferred revenue?

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How long does it usually take for a company to collect its accounts receivable balance?

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What's the difference between cash-based and accrual accounting?

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How is a credit card payment for a TV recorded under cash-based vs. accrual accounting?

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How do you decide when to capitalize rather than expense a purchase?

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Why do companies report both GAAP and non-GAAP earnings?

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How could a company with positive EBITDA for 10 years go bankrupt?

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Why would Goodwill be impaired and what does it mean?

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Under what circumstances would Goodwill increase?

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