What Is Finance Quizlet?
A Financial Statement for a Company
Financial data is used by investors and analysts to make predictions about the company's stock price. The annual report is one of the most important resources of reliable and audited financial data. The financial statements are used by investors, market analysts, and creditor to evaluate a company's financial health and earnings potential.
The balance sheet, income statement, and statement of cash flows are the three major financial statement reports. The balance sheet shows a company's assets, liabilities and stockholders' equity. The end of the fiscal year is when the snapshot is usually taken, and the date at the top of the balance sheet is when it is.
The balance sheet shows how assets are funded, either with debt or stockholders' equity. Assets are listed in order of their value. Liabilities are listed in the order they will be paid.
Long-term or non-current debts are expected to be paid in a year, while short-term or current debts are expected to be paid in a year. The income statement covers a range of time, which is a year for annual financial statements and a quarter for quarterly financial statements. The income statement shows the revenue, expenses, net income and earnings per share.
It usually gives two to three years of data. The revenue earned by a company is called operating revenue. The revenue from the production and sale of autos would be realized by the manufacturer.
Real Estate Principles Final Exam Flashcard
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A listing agreement in which the broker is entitled to receive commission if the base price is higher than the amount that the broker is entitled to receive. Other quiz sets are available. The Texas Real Estate Finance Exam Quizlet was published two hours ago.
Texas Real Estate Principles 1 Final Exam was held 9 hours ago. The show details are on Globalreal-estate.net. The lowest price online is due to the fact that the Oregon real estate exam prep material is the highest quality.
Real estate professionals cross examine and edit each exam question and answer for accuracy. The real estate license exam has a financing practice test. Question 1.
How does a home equity line of credit differ from a second mortgage? The interest on the home equity line of credit is not deductible. The terms can be used in different ways.
A note on the income left over after a certain number of expenses are satisfied
It's the amount of income left over after all the necessary and matched expenses are subtracted. The stock market is driven by it. The profit motive is when businesses try to maximize profit.
Commercial Financial Institutions
Financial institution is a business that deals with moving, investing or lending money. It deals with financial instruments or financial services. Savings and loan associations, credit unions, and commercial banks are some of the institutions that are included.
Commercial financing institutions charge higher interest rates than banks and credit unions, but they are more likely to approve a loan request. They can loan more against the assets. Smaller businesses might get a larger loan from a finance company than from a bank.
Accounting for Business
Every business needs to maintain accounting records so that the income or loss can be communicated to all the stakeholders of the business. Financial accounting is one of the oldest branches of accounting that deals with recording financial transactions in a systematic manner so that the financial position of a business can be determined. The purpose of keeping books of accounts is to provide information about the financial performance of your business to your stakeholders.
Stakeholders need reliable accounting information to make decisions. The materiality concept states that trivial events can be ignored. The material facts that influence the decisions of the stakeholders of your business must be recorded.
Matching costs with revenue earned at the time when a transaction occurs is how the economic events of a business are recognized. It is not a factor if cash has been paid. The operating expenses are the ones that provide benefits.
Financing expenses are expenses relating to non-equity financing used to raise capital for the business. Capital expenses generate benefits over time. In the current period, operating expenses are subtracted from revenues to arrive at operating earnings of the firm.
Accounting in Business
Accounting is a more efficient version of the processes that are used in a business. Accounting helps businesses make sense of their financial data and keeps them compliant with financial regulations. Accounting helps organizations to determine their financial rights. Without proper accounting, it would be difficult for a business to calculate the exact amount a supplier needs to be paid, for example, the cost of purchase, discounts, sales tax, withholding tax, duties, refunds, etc.
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