Financial Statements, Taxes & Cash Flow
You complete this process by deducting costs associated with a capital asset that is intangible over some length of time.
This measures multiple cash inflows into a company over a set length of time.
A financial statement that lists a company's accounts for liabilities, assets and owner's equity. It also shows the balances of these accounts.
Balance Sheet Equation / Basic Accounting Equation: Formula
Assets = liabilities + owner's equity
This is how much money a company acquires over the length of an accounting period.
Businesses have this kind of cash flow when they bring in more cash than they lose.
Earnings Before Interest and Taxes (EBIT)
The revenue a company has left after they take out costs associated with production, general expenses, administration and selling, but before removing taxes of interest.
A type of cash flow that occurs when a business loses more money than it brings in.
Generally Accepted Accounting Principles (GAAP)
A set of standards that govern how financial statements, including the balance sheet, are reported.
Look at this to see how much money a company makes after removing the money spent on various capital expenditures.
Operating cash flow - capital expenditures
You can look at this to see how well you company can use the core activities of business to generate a positive cash flow.
We use this term to describe what happens if a company's revenue is greater than its expenses in an accounting period.
These are things a business owes and they must be reported on this financial statement. Examples can include payments for rent or interest.
Operating cash flow + cash flow that comes from investments + cash flow associated with financing
Use this accounting process by deducting the costs of capital assets that are considered tangible.
Costs associated with the purchase of equipment and machinery by a business. This many also involve the purchase of buildings.
We use this term to refer to things that have value that are owned by a company. Examples can include equipment or land.
Operating Cash Flow (OCF): Formula
Earnings before taxes and interest are removed + amortization + depreciation - taxes
Balance Sheet Equation / Basic Accounting Equation
An equation that says a company's assets have to equal the owner's equity added to liabilities. If assets exceed these, there has been an error in the calculation.
Financial Statements, Taxes & Cash Flow
You complete this process by deducting costs associated with a capital asset that is intangible over some length of time.
This measures multiple cash inflows into a company over a set length of time.
A financial statement that lists a company's accounts for liabilities, assets and owner's equity. It also shows the balances of these accounts.
Balance Sheet Equation / Basic Accounting Equation: Formula
Assets = liabilities + owner's equity
This is how much money a company acquires over the length of an accounting period.
Businesses have this kind of cash flow when they bring in more cash than they lose.
Earnings Before Interest and Taxes (EBIT)
The revenue a company has left after they take out costs associated with production, general expenses, administration and selling, but before removing taxes of interest.
A type of cash flow that occurs when a business loses more money than it brings in.
Generally Accepted Accounting Principles (GAAP)
A set of standards that govern how financial statements, including the balance sheet, are reported.
Look at this to see how much money a company makes after removing the money spent on various capital expenditures.
Operating cash flow - capital expenditures
You can look at this to see how well you company can use the core activities of business to generate a positive cash flow.
We use this term to describe what happens if a company's revenue is greater than its expenses in an accounting period.
These are things a business owes and they must be reported on this financial statement. Examples can include payments for rent or interest.
Operating cash flow + cash flow that comes from investments + cash flow associated with financing
Use this accounting process by deducting the costs of capital assets that are considered tangible.
Costs associated with the purchase of equipment and machinery by a business. This many also involve the purchase of buildings.
We use this term to refer to things that have value that are owned by a company. Examples can include equipment or land.
Operating Cash Flow (OCF): Formula
Earnings before taxes and interest are removed + amortization + depreciation - taxes
Balance Sheet Equation / Basic Accounting Equation
An equation that says a company's assets have to equal the owner's equity added to liabilities. If assets exceed these, there has been an error in the calculation.
