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ACCO 220
Acounting for non-financial managers
30 cards·by Mayla
accoconcordia
Cash
primarily money on deposite at a bank
Inventory
Goods purchased for resale
Account Receivable
Amount due from customers for services thay have purchased on credit(ASSET)
Fixed Assets
Furniture, machines, ect.
Bank Loan
The obligation to repay a loan (liability)
Account Payable
The obligation to pay money in the future(liability)
Shared Capital
The portion of the share holders equity
Retained earnings
the portion of the claim of shareholders that increases as the company operates profitably
but is reduced when dividens are paid.
Revenue
The gross increase in owners equity
Expense
The gross decrease in owners equity
Dividends
The decrease in retained earnings when profits are distributed
Basic Acounting Equation
Assets=Liabilities+Owners Equity
Accrued
Used to move expenses into correct periods
Operating Income
Revenue-Operating Expense
Gross Profit Ratio
Revenue - Cost of Goods
Return On Sales
Revenue-(Cost of goods+Operateing expense)
Return On Assets
Operating Income divided by the operateing assets
Net Income to Sales Ratio
net income divided by sales
Earning per share
net income divided by number of shares issued
Fully diluted earning per share
(net income + intrest saved on conversion) divided by (number of shares potentially issued)
Receiveable turn over ratio
anual sales divided end of year receivables
Asset turn over ratio
sales divided by total assets
Liquidity Ratio-Current Ratio
current assets divided by current liability
Liquidity Ratio-Quick Ratio
(current assets-inventory) divided by current liability
Debt to Equity Ratio
answer
Debt to assets ratio
debt to assets ratio
Operating Revenu
How much your company is makeing from its buisness - how much its spending to do it
Return on Assets
operating income divided by total assets
return on equity
net income divided by share holder equity
Matching
That the sales revenue realized be reported in the same period it was made not another