FAQs tagged as

Financial Statements

  1. Why do some companies pay a dividend, while other companies do not?

  2. What are some of the key differences between IFRS and U.S. GAAP?

  3. Which transactions affect the retained earnings statement?

  4. How are oil reserves accounted for on an oil company's balance sheet?

  5. How do companies calculate revenue?

  6. Does the balance sheet always balance?

  7. What's the difference between EBITDA, EBITDAR and EBITDARM?

  8. Why did Tyco's financial statements attract the SEC's attention in 2002?

  9. What's the difference between bottom-line and top-line growth?

  10. What are the disadvantages of using net present value as an investment criterion?

  11. Where can I find a company's annual report and its SEC filings?

  12. Why would my stock's value decline despite good news being released?

  13. How rapidly can expanding sales reduce a firm's earnings?

  14. What does the diluted share price reveal about a company's financial strength?

  15. What does it mean to be "above water"?

  16. How are a company's financial statements connected?

  17. What is property, plant and equipment, and what does it mean?

  18. Why do companies report earnings at different times?

  19. What happens if a company doesn't think it will collect on some of its receivables?

  20. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  21. What is a treasury stock?

  22. Are domestic and foreign subsidiaries included on a company's financial statements?

  23. What does negative shareholder equity on a balance sheet mean?

  24. Where can I get a company's prospectus and/or financial statements?

  25. Where do companies keep their cash?

  26. When must a company announce earnings?

  27. When should a company recognize revenues on its books?

  28. What are pro forma earnings?

  29. Why do companies postpone earnings announcements?

  30. Is it possible for a company to have a positive cash flow and a negative net income?

  31. What is the difference between a compiled and a certified financial statement?

  32. What are the generally accepted accounting principles for inventory reserves?

  33. When looking at my online broker account, I see an account value, cash value and purchase power number. How are these calculated?

  34. What is the weighted average of outstanding shares? How is it calculated?

  35. How do you determine a company's percentage of credit sales?

  36. What is the difference between IAS and GAAP?

  37. What is fair capital?

  38. What is the short/current long-term debt account on a company's balance sheet?

  39. When is earnings season?

  40. What happens to the stock prices of two companies involved in an acquisition?

  41. What's the difference between short-term investments in marketable securities and equity?

  42. Where can I find information on different companies so that I won't have to read every earnings report?

  43. What is earnings management?

  44. What is the difference between amortization and depreciation?

  45. One of my stocks missed the deadline to file its quarterly financial statements. What happens next?

  46. What is the difference between asset-based lending and asset financing?

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