Breaking Into Wall Street Basic Accounting Guide Study Guide Rated A+

How long does it usually take for a company to collect its Accounts Receivable balance? {Ans: Generally the Accounts Receivable Days are in the 30-60 day range, though it can be higher for companies selling higher-priced items and it might be lower for companies selling lower-priced items with cash payments only.}Walk me through the 3 financial statements. {Ans: The 3 major financial statements are the Income Statement, Balance Sheet and Cash Flow Statement. The Income Statement shows the company's revenue and expenses over a period of time, and goes down to Net Income, the final line on the statement. The Balance Sheet shows the company's Assets - its resources - such as Cash, Inventory and PP&E, as well as its Liabilities - such as Debt and Accounts Payable - and Shareholders' Equity - at a specific point in time. Assets must equal Liabilities plus Shareholders' Equity. The Cash Flow Statement begins with Net Income, adjusts for non-cash expenses and changes in operating assets and liabilities (working capital), and then shows how the company has spent cash or received cash from Investing or Financing activities; at the end, you see the company's net change in cash.}What's the difference between