SMG SM 131 Study Guide - Midterm Guide: Psychographic, Currency Intervention, Deontological Ethics

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Rebecca Nichols

Document Summary

Lists what a firm has and owes at a certain point in time (quarter/year end) Liability probable future economic sacrifices (obligations to transfer assets or provide services to other entities. ) Liabilities and equity capture the firm"s financing period of times. Capture economic inflows ( revenues ) and outflows ( expenses ) over a. On accrual basis which means it is independent of timing of cash flows. Revenues - expenses (cogs) = net income. Revenue = transactions increasing increasing the value of a firm. Expenses = transactions decreasing the value of the firm. Cost of goods sold and sg&a (selling, general, and admin) Net income = change in economic value of firm (on accrual basis) Net income - dividends ( thank you" for shareholders) = retained. Captures changes in a firm"s cash flow over a period of time. Operations + investing + financing = net cash flow. Operations cash in/outflows from operating activities.