Wall Street Prep Accounting 180 Correctly Answered Questions Latest Update

Useful Life of Fixed Assets (examples) {Ans: Plants and buildings 15-40 yrs Machinery & Equipment 3-20 yrs Furniture & Fixtures 5-10 yrs Computer Software & Hardware 3-5 yrs}Ending Inventory = {Ans: Beginning Inventory + Net Purchases - Cost of Goods Sold}All common and preferred dividends _______retained earnings (debits) {Ans: decrease}stock based compensation {Ans: added to CFO}What CFO's do with net income/profit? {Ans: 1. Make distributions to shareholders via dividends 2. Keep profits and reinvest in the business 3. Pay down any existing debt obligations or other liabilities 4. Sit on it and grow a pile of cash}Gross Profit = ________ - ___________ {Ans: Net revenue, COGS}