ENTR 3P96 Chapter Notes - Chapter 4: Nopat, Current Liability, Income Statement
16 Feb 2012
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Document Summary
Describe the process for obtaining and recording resources needed for an early-stage venture. Explain the use of internal statements as they relate to formal financial statements. Briefly describe the cost of production schedule and the inventories schedule. Prepare cash flow statement and explain how it helps monitor a venture s cash position. Describe operating breakeven analysis in terms of ebdat breakeven (survival) revenues. Identify major drivers on the amount of revenues needed to survive. Describe operating breakeven analysis in terms of nopat breakeven revenues. Generally accepted accounting principles (gaap): guidelines that set out the manner and form for presenting accounting information. Accrual accounting: the practise of recording economic activity when recognized rather than waiting until realized. Depreciation: reducing in values of a fixed asset over its expected life intended to reflect the usage of wearing out the asset. Accumulated depreciation: sum of all previous depreciation amounts to charged to fixed assets.
