【ITパスポート】 #8 財務諸表（ストラテジ分野）

▼The "Author's Fastest Guaranteed Pass Course" is now available on Udemy! Access it via the link below for an 84% discount sale price. No need to wait for Udemy's discount sale. https://udemy.it-pass.jp ▼There's also a free practice test app! https://app.it-pass.jp/ This video explains financial statements. ▼Table of Contents 0:00 Introduction 0:11 Financial Statements 0:51 Balance Sheet 2:04 Current Ratio 2:32 Cash Flow Statement 2:53 Statement of Changes in Equity 3:10 This is What's on the Exam! (Summary) 3:50 Spring 2019 Question 18 - Past Exam Questions ▼Contents In this video, we'll explain "financial statements." Financial Statements Financial statements are documents used to report business performance both internally and externally. Financial statements provide insight into a company's health. Financial statements include four documents. Balance Sheet Income Statement Cash Flow Statement Statement of Changes in Shareholders' Equity You learned about the income statement in the previous video. If you've forgotten, review the previous video. Here, we'll explain the remaining three documents. Balance Sheet A balance sheet records a company's assets, liabilities, and net assets at a given point in time. In a balance sheet, assets are listed on the left, and liabilities and net assets are listed on the right. The total of liabilities and net assets is always equal to the total assets. Assets on the left include cash, deposits, land, buildings, equipment, and other assets owned by the company. All assets are called total assets. On the other hand, liabilities and net assets on the right form the capital used to run the business. This is called capital. Liabilities are also called borrowed capital, and net assets are also called equity. Liabilities are money that a company needs to pay, such as notes payable and loans. Net assets are money that does not need to be paid, such as capital. Total capital is the sum of all capital, that is, liabilities and net assets. Exams often include calculation questions using balance sheets. The current ratio is one example. Current Ratio The current ratio is the ratio of current assets to current liabilities. It is calculated by dividing current assets by current liabilities. Current Ratio = Current Assets ÷ Current Liabilities × 100 Current assets are assets that can be converted into cash within one year. Current liabilities are liabilities that must be paid within one year. A current ratio below 100% indicates that a company lacks short-term solvency. Cash Flow Statement A cash flow statement is a document that records a company's cash inflows and outflows. Cash means cash, and flow means flow. Cash inflows and outflows are recorded in three categories: operating activities, investing activities, and financing activities. Statement of Changes in Shareholders' Equity The statement of changes in shareholders' equity is a document that records changes in a company's net assets. Since this is often included in the incorrect answer choices on exams, we won't go into detail here. This is what will come up on the exam! Financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in shareholders' equity. Balance sheet: Assets, liabilities, and net assets Income statement: Revenues and expenses Cash flow statement: Cash inflows and outflows Statement of changes in shareholders' equity: Changes in net assets Balance sheets often include calculations such as the allocation of assets, liabilities, and net assets, as well as current ratios. Past Questions Which of the following describes a balance sheet? A. A statement that shows cash flow status by activity category over a certain period of time. B. A statement that shows a company's operating results based on revenues and expenses incurred over a certain period. C. A statement that shows the balance at the end of the previous period, changes in the current period, and balance at the end of the current period for each item of a company's net assets. D. A statement that shows a company's financial position as of the closing date, broken down into assets, liabilities, and net assets. The correct answer is D. A balance sheet is a table that records a company's assets, liabilities, and net assets at a given point in time. Let's check the other options as well. A. Since it says "cash flow," it's a cash flow statement. B., which shows operating results using "revenues and expenses," is an income statement. C., which shows changes in "net assets," is a statement of changes in shareholders' equity. That's the explanation of "financial statements." Thank you for your hard work! ▼Author Profile ・Kyosuke Takahashi ・Graduated from San Jose State University ・Former Mercari iOS Engineer ・Udemy: https://udemy.it-pass.jp ・Question Collection App: https://app.it-pass.jp/ ・Books IT Passport Guaranteed Pass Textbook: https://amzn.to/4i0BStW Fundamental In...