"Breaking Into Wall Street" Accounting -
Questions With Accurate Solutions
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Terms in this set (93)
1. Revenue
What does the Income
2. Expenses
Statement list?
3. Taxes
1. It must correspond to the period only shown on
the income statement. A 20 year asset would NOT
What criteria must each
appear on the 1 year income statement
item meet in order to be
listed on the Income
2. It must affect the company's taxes
Statement?
ex: interest paid on debt is tax deductible, so it
would appear on the income statement
1. Revenue and Cost of Goods Sold
What are the 4 main 2. Operating Expenses (not directly linked to
sections on the income product sales)
statement? 3. Other Income and Expenses
4. Taxes and Net Income
Rev is the value of the products/services sold in a
Revenue and Cost of
period. COGS represents the expenses directly
Good Sold means..?
linked to the sale of the products/services
Items that are not directly linked to the product
Operating Expenses sales
Ex: Employee salary, rent, marketing, research, etc
This goes between Operating Income and
Pre-Tax Income. Interest shows up here, as well as
Other Income and
items such as Gains
Expense
and Losses when Assets are sold, Impairment
Charges, Write-Downs, and
, Net Income represents the company's "bottom
line" - how much in after-tax profits it has earned.
Taxes and Net Income
Net Income = Revenue
- Expenses - Taxes.
1. Revenue
2. COGS
3.Operating Expenses
What ALWAYS appears 4. Depreciation
on the income 5. Amoritization
statement? 6. Stock Based Compensation
7. Gains
8. Interest
9.Write Downs
The company's resources -
1.its Assets - and how it acquired those resources -
What does the balance 2.Liabilities & Equity - at a specific point in time.
sheet show?
The sheet must always remain in balance, both sides
equaling each other
What does asset ALWAYS Assets=liabilities+equity
equal?
An item that will
What is an asset? result in, directly or indirectly,
additional cash in the future.
An item that will
result in, directly or indirectly,
less cash in the future. Most
Liabilities are related to external
What is a liability
parties - payments owed to
suppliers, or borrowed money,
for example. Liabilities are used
to fund a business.
Questions With Accurate Solutions
Save
Terms in this set (93)
1. Revenue
What does the Income
2. Expenses
Statement list?
3. Taxes
1. It must correspond to the period only shown on
the income statement. A 20 year asset would NOT
What criteria must each
appear on the 1 year income statement
item meet in order to be
listed on the Income
2. It must affect the company's taxes
Statement?
ex: interest paid on debt is tax deductible, so it
would appear on the income statement
1. Revenue and Cost of Goods Sold
What are the 4 main 2. Operating Expenses (not directly linked to
sections on the income product sales)
statement? 3. Other Income and Expenses
4. Taxes and Net Income
Rev is the value of the products/services sold in a
Revenue and Cost of
period. COGS represents the expenses directly
Good Sold means..?
linked to the sale of the products/services
Items that are not directly linked to the product
Operating Expenses sales
Ex: Employee salary, rent, marketing, research, etc
This goes between Operating Income and
Pre-Tax Income. Interest shows up here, as well as
Other Income and
items such as Gains
Expense
and Losses when Assets are sold, Impairment
Charges, Write-Downs, and
, Net Income represents the company's "bottom
line" - how much in after-tax profits it has earned.
Taxes and Net Income
Net Income = Revenue
- Expenses - Taxes.
1. Revenue
2. COGS
3.Operating Expenses
What ALWAYS appears 4. Depreciation
on the income 5. Amoritization
statement? 6. Stock Based Compensation
7. Gains
8. Interest
9.Write Downs
The company's resources -
1.its Assets - and how it acquired those resources -
What does the balance 2.Liabilities & Equity - at a specific point in time.
sheet show?
The sheet must always remain in balance, both sides
equaling each other
What does asset ALWAYS Assets=liabilities+equity
equal?
An item that will
What is an asset? result in, directly or indirectly,
additional cash in the future.
An item that will
result in, directly or indirectly,
less cash in the future. Most
Liabilities are related to external
What is a liability
parties - payments owed to
suppliers, or borrowed money,
for example. Liabilities are used
to fund a business.
