Accounting value The amount you paid for an item on the balance sheet (historical cost).
By order of liquidity:
Cash
Asset order
Current assets
Fixed assets
Assets Economic resources (things of value) owned by a firm.
Assets equal... Liabilities plus shareholders' equity
Average tax rate Tax bill dividend divided by taxable income.
Average tax rate Total taxes paid/taxable income
"Bottom line" Net income
Capital spending Net spending on fixed assets
The difference between the amount of cash that came into the firm and
Cash flow
amount that left the firm.
equal cash flows to creditors and stockholders.
Or
Cash flow from assets are
Comprised of Operating cash flow - change in net working capital - ca
spending
, Cash flow identity Cash flow from assets = cash flow to creditors + cash flow to stockhold
cash flow to creditors interest paid - net new borrowing
Corporate tax rate US 2021 21%
The total cost of merchandise sold during the period including produc
Cost of goods sold
costs.
Assets that will be liquid within the year vs. assets that will take more th
Current vs. Fixed Asets
year to become liquid.
Debt includes all borrowing incurred by a firm, including bonds, and is
repaid according to a fixed schedule of payments.
Debt vs. Equity
Equity consists of funds provided by the firm's owners (investors or
stockholders) that are repaid subject to the firm's performance.
The accountant's estimate of the cost of fixed assets/equipment used in
Depreciation production process matched with the benefits produced from owning
(Pay 5000, use over 5 years = 1000 per year)
Does operating cash flow include No, they are financing expenses.
depreciation or interest?
A controversial practice in which corporations overstate or understate
Earning management
earnings to smooth out dips and surges and calm investors.
By order of liquidity:
Cash
Asset order
Current assets
Fixed assets
Assets Economic resources (things of value) owned by a firm.
Assets equal... Liabilities plus shareholders' equity
Average tax rate Tax bill dividend divided by taxable income.
Average tax rate Total taxes paid/taxable income
"Bottom line" Net income
Capital spending Net spending on fixed assets
The difference between the amount of cash that came into the firm and
Cash flow
amount that left the firm.
equal cash flows to creditors and stockholders.
Or
Cash flow from assets are
Comprised of Operating cash flow - change in net working capital - ca
spending
, Cash flow identity Cash flow from assets = cash flow to creditors + cash flow to stockhold
cash flow to creditors interest paid - net new borrowing
Corporate tax rate US 2021 21%
The total cost of merchandise sold during the period including produc
Cost of goods sold
costs.
Assets that will be liquid within the year vs. assets that will take more th
Current vs. Fixed Asets
year to become liquid.
Debt includes all borrowing incurred by a firm, including bonds, and is
repaid according to a fixed schedule of payments.
Debt vs. Equity
Equity consists of funds provided by the firm's owners (investors or
stockholders) that are repaid subject to the firm's performance.
The accountant's estimate of the cost of fixed assets/equipment used in
Depreciation production process matched with the benefits produced from owning
(Pay 5000, use over 5 years = 1000 per year)
Does operating cash flow include No, they are financing expenses.
depreciation or interest?
A controversial practice in which corporations overstate or understate
Earning management
earnings to smooth out dips and surges and calm investors.
