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14 Cards in this Set
- Front
- Back
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Return on Assets ratio
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Net income/average assets
avg assets: adding beginning and ending values of assets and dividing by 2 |
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Asset turnover ratio
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Net sales/average total assets
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Secured Bonds/Unsecured Bonds
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Have specific assets of the issuer pledged as collateral.
Unsecured- are issued against the general credit of the borrower |
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Convertible bonds
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Bonds that can be converted into common stock at the bondholders option
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Callable bonds
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Bonds that the issuing company can retire at a stated dollar amount prior to maturity
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Revenue Expenditures
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are costs expensed immediately, not included in the cost of a plant asset
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Capital expenditures
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are those costs included in a plant asset account, not expensed immediately
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Operating Lease
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the lessee uses the asset but does not record an asset or a liability
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Capital lease
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The lessee uses the asset and records an asset and a liability
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Profit Margin Ratio
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Net income/net sales
Multiplying the profit margin ratio by the asset turnover ratio yields the return on assets ratio |
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Copyright
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Gives the owner exclusive right to reproduce and sell an artistic or published work. Legal life of a copyright is 70 years
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Trademark
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Word, phrase, jingle that distinguishes and identifies a particular enterprise or product. 20 year legal life, may be renewed indefinitely as long as they are in use.
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Franchise
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A contractual agreement under which the franchisor grants the franchisee the right to sell certain products, to render specific services, or to use certain trademarks or trade names, usually within a designated geographic area.
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Goodwill
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Recorded only when there is an exchange transaction that involves the purchase of an entire business
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