Accounting Crash Course - Wall Street
Prep
Net Revenues - ANSWER--Total dollar payment for goods and services that are credited to an income statement
... [Show More] over a particular time period Cost of Goods Sold (COGS) - ANSWER--represents a company's direct cost of manufacture or procurement of. a good or service that the company sells to generate revenue. Gross Profit - ANSWER-Revenues - Cost of Goods Sold (COGS) Selling, General & Administrative (SG&A) - ANSWER--Operating costs not directly associated with the production or procurement of the product or service that the company sells to generate revenue.
*tied up with the selling of the business*
Ex.) Payroll, wages, commissions, meal and travel expenses, advertising, and marketing expenses. Research & Development (R&D) - ANSWER--A company's activities that are directed at developing new products or procedures
-include compensation for employees, equipment, and facilities engaged in the R&D process. EBITDA - ANSWER--Earnings before interest, taxes, depreciation & amortization: Gross Profit - SG&A - R&D
-Popular measure of a company's financial performance Depreciation & Amortization (D & A) - ANSWER--The allocation of cost over a fixed asset's useful life in order to match the timing of the cost of the asset with when it is expected to generate revenue benefits Other Operating Expenses / Income - ANSWER--Any operating expenses not allocated to COGS, SG&A, R&D, D&A Operating Profit (EBIT) - ANSWER--Earnings before interest & taxes: EBITDA - D&A Interest Expense - ANSWER--the amount/payments the company has to pay on debt owned/outstanding debt. Interest Income - ANSWER--A company's income from its cash holdings and investments (stocks, bonds, and savings accounts)
-Often presented on the Income Statement as Net Interest Expense. Non-operating items - ANSWER--Items peripheral to core operations.
-Includes gains/losses on investments and revaluation of certain financial assets and debt obligations. Income Tax Expense - ANSWER--The tax liability a company reports on the income statement Net Income - ANSWER--EBIT - Net Interest Expense - Other Non-operating Income - Taxes
Accounting Crash Course - Wall Street
Prep
Basic Earnings per share (EPS) - ANSWER [Show Less]