Intermediate Financial Accounting

(Intermediate Financial Accounting)
Financial statements


 * 1) Balance sheet
 * 2) * The balance sheet in its simplest form is covers the accounting equation (Asset=liabilities + Equity) at a specific point in time ex. Dec. 31 20XX.
 * 3) Income Statement
 * 4) * The income statement covers the profit and loss over a period of time such as year 20XX. With the Goal of finding the net income with the equation ( Net Income = Revenue+ Gain) -(expenses + losses)
 * 5) Cash Flow Statement
 * 6) * the statement of cash flows is primarily concerned with the changes in specific assets and liabilities over a period of time. the four areas the the cash flow statement reports on are operating activities (primary source business income), investing activities ( Changes in Porperty, plant and equipment and long term investments), Financing activities (Changes in Equity) and Supplemental information (Changes in signficant items that do not involve cash such as exchanges)
 * 1) Cash Flow Statement
 * 2) * the statement of cash flows is primarily concerned with the changes in specific assets and liabilities over a period of time. the four areas the the cash flow statement reports on are operating activities (primary source business income), investing activities ( Changes in Porperty, plant and equipment and long term investments), Financing activities (Changes in Equity) and Supplemental information (Changes in signficant items that do not involve cash such as exchanges)

Useful Ratios
 * 1) *#Liquidity Ratios
 * 2) *#* Current
 * 3) *#* Acid test
 * 4) *#Activity Ratios
 * 5) *#* Turnover tests
 * 6) *#Profitability Ratios
 * 7) *#*Return on Assets
 * 8) *#*Return on Equity
 * 9) *#*Profit Margin
 * 10) *#Coverage Ratios

(Example Balance Sheet and Income Statement)
Liquidity Ratios Liquidity ratios these ratios measure a firms’ efficiency and ability to meet obligations to other lenders

Probability and equity ratio’s these measure operation results and measure sources of equity