Copyright

Ch 2: Financial Statements, Taxes & Cash Flow

About This Chapter

Use this chapter to learn about preparing financial statements, tax rates, and calculation of cash flows. Our lessons come with written transcripts to help you with your comprehension of the material.

Financial Statements, Taxes & Cash Flow - Chapter Summary and Learning Objectives

Our experienced instructors will take you through the financial documents used by companies to record their financial performance over a given period and issues related to tax rates and cash flow. The videos can be reviewed as often as necessary, and you can search them topic-by-topic with our interactive timeline feature. At the end of this chapter, you will know about:

  • Balance sheet basics
  • Income sheet basics
  • The corporate tax
  • Marginal tax rates
  • Average tax rates
  • Cash flow calculation

Video Objective
The Balance Sheet: Purpose, Components & Format Learn about the structure of the balance sheet.
Preparing the Basic Income Statement and Statement of Retained Earnings Discuss generally accepted accounting practices and the income statement.
Corporate Tax Rate: Definition, Formula Discover corporate taxes.
What is a Marginal Tax Rate? - Definition, History & Quiz Study marginal tax rates.
Average Tax Rate: Definition, Formula & Quiz Explain average tax rates.
What Is Cash Flow? - Definition, Calculation & Example Look into the calculation of cash flow from various assets.

6 Lessons in Chapter 2: Financial Statements, Taxes & Cash Flow
Test your knowledge with a 30-question chapter practice test
The Balance Sheet: Purpose, Components & Format

1. The Balance Sheet: Purpose, Components & Format

There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.

Preparing the Basic Income Statement and Statement of Retained Earnings

2. Preparing the Basic Income Statement and Statement of Retained Earnings

Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.

Corporate Tax Rate: Definition & Formula

3. Corporate Tax Rate: Definition & Formula

In this lesson, we'll define corporate tax rates and explore how to calculate corporate tax based on a formula. You'll also learn about the United States' graduated tax system and look at examples to fully grasp the concepts discussed.

What is a Marginal Tax Rate? - Definition & History

4. What is a Marginal Tax Rate? - Definition & History

Most Western countries use tax brackets and marginal tax rates as the basis of their tax code. In this lesson, you'll learn the definition of marginal tax rate and its history in the United States.

Average Tax Rate: Definition & Formula

5. Average Tax Rate: Definition & Formula

Knowing the average tax rate in a progressive tax system is useful in understanding your tax burden. In this lesson, you'll learn about the average tax rate, related concepts, and how to calculate it. A short quiz follows.

What Is Cash Flow? - Definition, Calculation & Example

6. What Is Cash Flow? - Definition, Calculation & Example

Companies can't function without sufficient cash flow. In this lesson, you'll learn what cash flow is and how to calculate it, and you'll be provided some examples. You'll also have a chance to take a short quiz.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support