MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Wall Street Prep: Accounting Crash Course
(2025 Edition) – Complete Financial
Accounting & Valuation Training | Verified
Notes, Q&A & Practice Tests
Form 14A (Proxy Statement)
A required filing prior to a company's annual shareholder meeting
Contains detailed information about top officers and their compensations
Often solicits shareholder votes (proxies) for Board nominees and other important matters
Other Financial Reports
S-1, S-4, and 20-F
Part 1 of the 10-K
Part 2 of the 10-K
The red meat of the 10-K
Parts 3 and 4 of the 10-K
Where can you find the latest share count on a 10-K?
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
At the bottom of the cover page
Business Section of the 10-K
Allows you to get to know a company
Generally Includes: Company background, business strategy, product descriptions, markets and
distribution, competition, distribution networks
MD&A Section of the 10-K (Item 7)
Reviews what happened during the year, what their expectations are, etc.
Selected Financial Data of the 10-K (Item 6)
Includes the most important financial highlights
Financial Statements Section of the 10-K (Item 8)
Includes: B/S, CFS, I/S, etc.
T/F: GAAP requires that firms show recorded values for acquired intangible assets such as patents and
trademarks on their financial statements
True!
GAAP requires that firms only show measurable activities, such as the value of acquired intangible assets
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Assets such as employee, customer loyalty, and internally-developed trademarks are not shown on
financial statements
The Income Statement is designed to measure...
The profits of a firm over a period of time
What is the Income Statement?
A financial report that depicts the operating performance of a company (i.e. revenues less expenses
generated or profitability) over a specific period of time (quarter or year)
AKA The Consolidated Statement of Earnings, Profit and Loss Statement (P&L), Statement of Revenues
and Expenses
Why is the Income Statement Important?
Facilitates the analysis of a company's growth prospects, cost structure, and profitability
Analysts use it to identify the components and sources ("drivers") of net earnings
Major Income Statement Line Items (Pt. I)
Major Income Statement Line Items (Pt. II)
Ways to Measure Profitability
EBITDA & Operating Profit (EBIT)
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Bottom Line
Net income on the Income Statement
Revenue
Represents proceeds from the sale of goods and services produced or offered by a company
Not all income is revenue
Interest income earned from investments and income received from a legal settlement are not
considered revenue
AKA Sales, turnover, net sales, net revenues, top line
Top Line
Revenues on the Income Statement
CVS Revenue Exercise
Note: How much you collect in cash is irrelevant in revenue; it is how much you EARNED during the
period
Revenue Recognition
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
Wall Street Prep: Accounting Crash Course
(2025 Edition) – Complete Financial
Accounting & Valuation Training | Verified
Notes, Q&A & Practice Tests
Form 14A (Proxy Statement)
A required filing prior to a company's annual shareholder meeting
Contains detailed information about top officers and their compensations
Often solicits shareholder votes (proxies) for Board nominees and other important matters
Other Financial Reports
S-1, S-4, and 20-F
Part 1 of the 10-K
Part 2 of the 10-K
The red meat of the 10-K
Parts 3 and 4 of the 10-K
Where can you find the latest share count on a 10-K?
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
At the bottom of the cover page
Business Section of the 10-K
Allows you to get to know a company
Generally Includes: Company background, business strategy, product descriptions, markets and
distribution, competition, distribution networks
MD&A Section of the 10-K (Item 7)
Reviews what happened during the year, what their expectations are, etc.
Selected Financial Data of the 10-K (Item 6)
Includes the most important financial highlights
Financial Statements Section of the 10-K (Item 8)
Includes: B/S, CFS, I/S, etc.
T/F: GAAP requires that firms show recorded values for acquired intangible assets such as patents and
trademarks on their financial statements
True!
GAAP requires that firms only show measurable activities, such as the value of acquired intangible assets
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Assets such as employee, customer loyalty, and internally-developed trademarks are not shown on
financial statements
The Income Statement is designed to measure...
The profits of a firm over a period of time
What is the Income Statement?
A financial report that depicts the operating performance of a company (i.e. revenues less expenses
generated or profitability) over a specific period of time (quarter or year)
AKA The Consolidated Statement of Earnings, Profit and Loss Statement (P&L), Statement of Revenues
and Expenses
Why is the Income Statement Important?
Facilitates the analysis of a company's growth prospects, cost structure, and profitability
Analysts use it to identify the components and sources ("drivers") of net earnings
Major Income Statement Line Items (Pt. I)
Major Income Statement Line Items (Pt. II)
Ways to Measure Profitability
EBITDA & Operating Profit (EBIT)
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Bottom Line
Net income on the Income Statement
Revenue
Represents proceeds from the sale of goods and services produced or offered by a company
Not all income is revenue
Interest income earned from investments and income received from a legal settlement are not
considered revenue
AKA Sales, turnover, net sales, net revenues, top line
Top Line
Revenues on the Income Statement
CVS Revenue Exercise
Note: How much you collect in cash is irrelevant in revenue; it is how much you EARNED during the
period
Revenue Recognition
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
