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13 Cards in this Set
- Front
- Back
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What are financial statements |
End result of accounting record keeping process that records econ. Acti of company |
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4 key fin statements |
Income state Bal sheet State of cf State of eq |
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Roles of f.s |
Provide info abt companys performance, cf activities, financial position & comply w regulations |
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Users of financial statements |
Stockholders Creditors and lenders Regulatory agencies Customers Managers and employees |
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Why is cashflow needed |
To keep operations of business going |
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Cashflow helps... |
Gain flexibility in funding, finding investments and taking adv of business opportunities |
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Liquidity |
Ability to meet short term obligations |
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Solvency |
Ability to meet long term obligations |
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Where do companies get cash |
Financial institutions eg banks Financial markets eg money market and capital market Private placement eg insurance company |
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Balance sheet shows |
What does the company own and who has claims against company |
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Income statement |
How profitable is the company |
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Statement of cash flow |
Does the company generate cash |
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Statement of stockholder equit |
Who owns the company |
