Series65 MOD 20 Financial Statements

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Series65ForFab
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294112
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Series65 MOD 20 Financial Statements
Updated:
2015-01-27 22:31:37
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Series65
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Financial Statements
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  1. Determine which formula best describes a BALANCE SHEET
    ASSETS = LIABILITIES + NET WORTH
  2. CURRENT ASSETS are all assets that are:
    normally converted into cash in the ordinary course of business within one year.
  3. The three main groups of current assets are:
    • −CASH AND EQUIVALENTS
    • −ACCOUNTS RECEIVABLE
    • −INVENTORY
  4. What two categories are TOTAL LIABILITIES separated into:
    • Current liabilities
    • Long-term liabilities
  5. CURRENT LIABILITIES are those liabilities that fall due within ________
    one year
  6. LONG-TERM LIABILITIES include:
    mortgages and funded debt
  7. The two ways the stated dividend may be quoted are:
    • 5% preferred (par $100)
    • $5 preferred (par $10)
  8. The theoretical liquidation value of a company per share is called:
    BOOK VALUE
  9. Describe an income statement:
    An income statement lists the amounts received from selling goods and services, plus other items, and matches them against all the costs and outlays incurred to operate the company.
  10. To determine the EPS earnings /share:
    first calculate the available earnings, and then divide that amount by the number of common shares outstanding
  11. If a company’s outstanding preferred stock or bonds are convertible into common stock, the company will report both:
    non-diluted earnings per share and diluted earnings per share
  12. In financial statements AMORTIZATION is the gradual reduction of:
    the value of an intangible asset such as organizational costs, goodwill, and patents.
  13. In financial Statements DEPRECIATION is the:
    gradual reduction of the value of a tangible asset due to age, and wear and tear
  14. CASH FLOW is the amount of cash available to a company:
    after the deduction of taxes, but with the addition of depreciation
  15. WORKING CAPITAL formula is:
    WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
  16. CURRENT RATIO formula is
    • CURRENT RATIO = CURRENT ASSETS
    •                             CURRENT LIABILITIES
  17. The QUICK ASSET RATIO, also called the ACID TEST RATIO, is a method of determining:
    • whether a company could meet a sudden emergency.
    • QUICK ASSET RATIO = CURRENT ASSETS - INVENTORIES
    •                                       CURRENT LIABILITIES
  18. To investors who use fundamental analysis, the ________ is perhaps the most important of the ratios
    • P/E RATIO = MARKET PRICE 
    •                EARNINGS per SHARE
  19. Book value only indicates the _______value of the company.
    liquidation
  20. PRICE TO BOOK RATIO  formula:
    PRICE TO BOOK RATIO = CURRENT MARKET VALUE per SHARE (CMV)                               BOOK VALUE per SHARE
  21. Name the Liquidity Measures in a Financial Statement
    • Working Capital = Current Assets-Current Liabilities
    • Current Ratio=Current Assets/Current Liabilities
    • Quick Asset Ratio=Current Assets - Inventory
    •                             Current Liabilities
  22. What are OTHER Balance sheet Items:
    • Debt/Equity Ratio
    • Debt/Capital Ratio
    • Common Stock Ratio
    • Price/Book Ratio
  23. Define BOOK VALUE:
    Value that Common Shareholders would receive Theoretically, if Company were to be Liquidated

    • NetWorth - Intangible Assets-Preferred Par
    •               Shares Outstanding
  24. Another Name for Income Statement
    Profit/Loss
  25. In an Income Statement, Aggregate Transactions are:
    • Income
    • Expenses
    • Disbursements
  26. Income Statements are comprised of these 5 Sections:
    • Sales
    • Operating Income
    • Net Income
    • Available Income
    • Retained Earnings
  27. In an Income Statement, under Sales:
    • Expense
    • Depreciation
    • Interest
  28. Under Operating Income (pre-tax profit)
    Taxes
  29. Under NET Income
    Dividends paid to Preferred stockholders
  30. Under Available Income
    Dividends to Common stockholders
  31. Cash FLow formula
    Cash FLow= Net Income (aft taxes) + Depreciation
  32. What are OTHER Income Statement Items:
    • EPS, Earnings per Share
    • P/E Ratio
    • Dividend Payout Ratio
    • Retained Earnings ratio
    • Cash Flow

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