Sunday, 23 March 2014

KCQ’S on Chapter Three: Introducing Financial Statements

Chapter three was way better than chapter one more interesting and I could relate it to being at a university meeting new people for the first time. 
  • Companies Balance Dates are all different.
  • Equity value= Present Value of excepted future dividends.
  • Cash Flow and Dividends are cousins. 
  • Dividends= Cash Flow-Capital+Net Cash Flow
  • Income statements shows the changes in a business over a year. 

Questions:

  • Why isn't there a required format for balance sheets?
  • Why isn't there specific rules on financial statements?

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