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17 Cards in this Set
- Front
- Back
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accounting equation
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assets = liabilities + stockholders equity
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balance sheet
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assets, liabilities, Stockholders equity
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multi step Income statement
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net sales - COGS = Gross margin,
Gross margin - operating expenses = income from operations. + other revanues and expenses = income before taxes ends in Net income |
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Statement of retained earnings
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retained earnings 20x5
net income subtotal less dividentds retained earnings 20x6 |
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income statement
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revanues
Expenses income before taxes net income |
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inventory turnover
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COGS/ Avg inventory
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Days inventory on hand
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360/Inventory turnover
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continuity
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unless there is evedence against, the accountant assumes that the business will continue indefinately
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accrual
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recognition of an expense that has come about but has not yet been recorded
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defferal
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paid but not recognized
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closing process
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1)close credits to income summary account
2)close debits to income summary account 3)close income summary account to retained earnings account 4)close dividends to retained earnings account |
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capital expenditure
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an expenditure for the purchase or expansion of a long-term asset
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betterments
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improvements that do not add to the physical layout of a plant asset
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extraordinary repairs
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repairs that significantly enhance a plants assets estimated life or residual value.
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revanue expenditure
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an expenditure for ordinary repairs and maintenance of a long term asset
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dividend yield
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dividend per share/ market price per share = a %
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price/ earnings ratio
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market price per share/ earnings per share
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