Wall Street Prep Study Guide Exam With Correct Solutions.

Assets - Answer resources a company uses to operate its business includes cash, A/R, PP&E Liabilities - Answer represents the company's contractual obligations and includes A/P, debt, accrued expenses Shareholder's equity - Answer is the residual the value of the business available to the owners (shareholders) after debts have been paid off Income statement - Answer illustrates the profitability of the company over a specified period of time broad sense: shows revenue-expenses Balance sheet - Answer snapshot of the company economic resources and funding for those resources at a given point in time (A = L + SE) Revenue - Answer "top-line" represents the sale of goods and services it is recorded when earned (even though cash might not have been received at the time of transaction) Expenses - Answer netted against revenue to arrive at net income COGS (directly associate with good production), SG&A (indirectly associated with production), interest expense (expense related to paying debt holders periodic payments), taxes, depreciation expense (non-cash expense accounting