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Accounting 201
30 cards·by annaleigh.newall
Debt to assets
total liabilities/total assets
Receivables turnover
net sales revenue/ avg net receivables
current ratio
current assets/current liabilities higher is better
Asset turnover
net sales revenue/avg total assets
quick ratio
cash + ST investments + accounts rec, net/ current liabilities
balance sheet
assets = liabilities + equity
Days to sell
365/ inventory ratio
gross profit percentage
(net sales revenue-COGS/net sales revenue) x100
Earnings per share
net ncome/ avg # common shares outstanding
Quality of income
net cash from operations/ net income
Days to collect
365/ receivables turnover ratio
Market rate of interest
if higher than stated rate on bond, must sell bond at a discount
return on equity
(net income/avg stockholders equity)x100
annual depreciation on straight line
acq cost-salv value/useful life
trial balance
do debits and credits balance?
capital acquisitions ratio
net cash from operations/ cash paid for PPE
book value
acq cost-acc dep
fixed asset turnover
net sales revenue/avg net fixed assets
income statement
total revenues - expenses= net income
contingent liabilities GAAP vs IFRS
GAAP- if probable and estimable, record it. if only one and not the other put it in the notes.
IFRS- more likely than not record it
Price/Earnings ratio
stock price/ earnings per share
Net profit margin
(net income/net sales revenue)x100
classified balance sheet
assets and liabilities separated by current and noncurrent
inventory turnover
COGS/ avg inventory
effective interest
carrying value x market rate x n/12
times interest earned
net income + int exp + income tax exp/ int exp
FASB
financial accounting standards board
gross profit
sales rev-sales ret/allowances=net sales-COGS= gross profit
Units of production
acq cost-salvage/units of production
statement of retained earnings
beg retained earnings + net income - dividends/ ending retained earnings