KeownFOF5e_CH03

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Unformatted text preview: Financial Statements and Cash Flows Balance Sheet Terminology • Equity • Includes the shareholder’s investment – Preferred stock – Common stock • Treasury Stock – stock that was once outstanding and has been re-purchased stock by the company by • Retained Earnings – cumulative total of all the net income over the life of the firm, cumulative less common stock dividends that have been paid out over the years the 3 - 14 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet • ASSETS – Current Assets – Fixed Assets • Total Assets • LIABILITIES – Current Liabilities – Long-Term Liabilities • Total Liabilities • OWNER’S EQUITY – – – Preferred Stock Common Stock Retained earnings • Total Owner’s Equity • Total liabilities + OE 3 - 15 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Terms • Net Working Capital Current assets – current liabilities • Debt Ratio Percentage of debt a firm uses to finance its assets • Accrual Basis Accounting Recording revenues when earned and e...
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This document was uploaded on 01/16/2014.

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