COMMERCE 1AA3 Lecture Notes - Lecture 2: Interest Expense, Cash Flow Statement, Cash Cash
23 Feb 2017
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Attempting practice quiz a and b from m. a. l. *by monday: have read chp 1 & chp 2 from textbook. *by next friday: have read chp 3 for quiz. Midterm: revenues: are persistent, they occur from ongoing or operating activities (i. e. if tesla made 1 million in last quarter, expected to make min 1 mill in next quarter). Not expected to happen and might not even happen. (for ex. Blackberry sold million patents for million, therefore gain on sale of 6 mill. ) Expenses are from ongoing, loses are from peripheral. Wv cheated on emission test, higher emission then allowed, had to spend money on fixing it, that extra spending was unexpected! Bottom line is the net income or net loss. Net income is the most important item in the financial statements. Cash flow statement tells you how much cash comes in and out, not the income statement.
