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AGRI 5386 Exam #1

Terms in this set (54)

Income Statement
Profit & Loss statement
-reports financial performance over a period of time
Revenue (sales)
Money derived from selling the company's products or services
-The value you get when you provide your service or sell your product
Cost of Goods Sold (COGS)
The cost of producing or acquiring the goods or services to be sold
-The cost to maintain products to get them ready to sell
-Total cost of the products sold including inventory, shrinkage, & write-downs for damage/out-dated products
Operating Expenses
Expenses related to marketing & distributing the product or service & administering the business
Financial Costs
Interest Paid
-Dividends paid to preferred stockholders
Tax Expense (Tax Liability)
Amount of taxes owed, based upon taxable income
Income Statement Form
Balance Sheet
Depreciation
Allocating the cost of a tangible asset over its useful life & is used to account for declines in value
Amortization
The process of allocating to expense the cost of an intangible asset over a period of time
-It also refers to the repayment of loan principle over time
Tangible Goods
Physical Goods
Intangible Goods
Intellectual property, licensed rights or websites which can be bought or sold but not touched or handled
Positive cash-flow is more important than ______________.
Profit
The Financial Statements
1) Income Statement
2) Balance Sheet
3) Statement of Cash flows
Gross Profit
Sales - COGS
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