GAAP - the standard for creating financial reports in the United States.
Income statement - shows revenues, expenses, and profit for a time period such as a month, quarter, or years.
Fiscal year - any twelve-month period that a company uses for accounting purposes.
Gross profit line - "above the line or below the line"
Sales (revenue) - the dollar value given of all the products or services a company provides to its customers during a given period of time.
Costs of goods sold - all the costs directly involved in producing a product or delivering a service
Operating expenses - costs that are required to keep a business going day to day
Net profit (Net income) - the bottom line of the income statement
ethics, passion, intuition - ______, _______, _______ are all key characteristics of an entrepreneur
Opportunities and threats - The two parts of a SWOT analysis that refer to external areas of concern for a company
Strengths and weaknesses - The two parts of a SWOT analysis that refer to internal areas of a company
Non-cash expenses - expenses charged to a period on the income statement but is not actually paid out in cash
Depreciation expense - used to spread the cost of equipment and other assets over more than one accounting period
Operating profit (EBIT) - gross profit minus operating expenses, which includes depreciation and amortization
EBITDA (earning before interest, taxes, depreciation, amortization) - Wall Street believes is a better measure of a company's operating efficiency because it ignores noncash chargers
Earnings per share - a publicly traded company's net profit divided by the number of shares outstanding
RMA report - information categorized by NAICS codes, separated by total revenues, and tabulated to provide an industry average
Balance sheet - reflects the assets, liabilities, and owner's equity at a specific point in time
Assets - come first on the balance sheet and reflect what the company owns
current assets - includes assets that can be turned into cash in less than a year
cash and cash equivalents - comes first in the current asset portion of the balance sheet
Inventory - reflect items held for sales or used in the manufacturing of products that will be sold
Finished goods, raw materials - ____, ____, and work in progress are three types of inventory
long term assets - includes assets that cannot be turned into cash within the next twelve months
Capital expenditure - the purchase of an item that's considered a long-term investment, such as a building and/or equipment
Capital - refers to things such as physical capital and financial capital
Property, plant, and equipment (PPE) - a company's fixed assets and whose value is adjusted on the balance sheet by accumulated depreciation
Straight line, units of production, accelerated depreciation - Three methods of depreciation are...
Land - property used in the business
Building and leasehold improvements - ____ are amortized by the lessee over the economic life of the improvement or the life of the lease, whichever comes first.
Equipment - ___ reflects "historic costs" including delivery and installation charges, of machinery and equipment used in business operations.
accumulative depreciation - Accountants use ________________ to adjust the "historic cost" of all items, depreciated to what is known as "book value"
Other assets - refers to a multitude of other noncurrent assets on the balance sheet such as goodwill, patents, trademarks, copyrights, brand names, and
