Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
What is a current asset?
|
Cash plus other assets that are expected to be sold or converted to cash during the current operating cycleIncludes: Demand deposits, cash equivalents, accounts receivable, inventory, pre-paids, and short-term investments
|
|
What is a current liability?
|
A liability expected to be paid within 12 months or less
|
|
How is the Quick Ratio calculated?
|
(Cash + A/R + Trading Securities) / Current Liabilities
|
|
How is the Current Ratio calculated?
|
Currents Assets / Current Liabilities
|
|
How is Working Capital calculated?
|
Currents Assets - Current Liabilities
|
|
How is A/R Turnover calculated?
|
Credit Sales / Average A/R
|
|
How is Inventory Turnover calculated?
|
COGS / Average Inventory
|
|
How is Day Sales in Inventory calculated?
|
365 / Inventory Turnover
|
|
How is Days to Collect A/R calculated?
|
Average A/R / Average Sales per Day
|
|
How are gain contingencies recorded?
|
They are NOT accrued due to Conservatism
|
|
When are loss contingencies recorded?
|
If Probable - they are accrued (if estimable) and disclosedIf Reasonably Possible - they are disclosedIf Remote - don't accrue or disclose
|