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17 Cards in this Set
- Front
- Back
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Both income tax-basis and GAAP -basis FS recognize all the financial activities of a company's business. However, it is the _________ of this recognition that differs between the two methods.
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TIMING
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The estimated current value of an investment that constitute a LARGE part of person's total assets should be
shown as _________ amount as _______ |
ONE
AN INVESTMENT |
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The estimated current value of an investment life insurance is the CASH VALUE of the policy less the amount of _______
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LOANS AGAINST IT.
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NET WORTH =
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Estimated value of assets
- Estimated value of liabilities - Tax on difference between estimated values and tax basis _________________________ Net worth Tax on difference between estimated values and tax basis = Difference in assets less difference in liab. x Tax Rate |
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The estimated income taxes should be presented between _________ and _________ in the statement of financial condition.
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LIABILITIES AND NET WORTH
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Personal FS should present assets at their ________ values
and Liabilities at their _________ amounts. |
Estimated Current
Estimated Current |
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The modified cash basis of accounting is a combination of the _________ basis and the ________ basis.
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CASH AND ACCRUAL
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Cash basis income is (vs accrued basis)
1. Higher when 2 Lower when |
1. AP ↑ ; AR ↓
2. AP ↓ ; AR↑ direct relationship with AP |
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A set of Personal FS usually includes a statement of __________ and a statement of __________
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FINANCIAL CONDITION AND
NET WORTH |
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The _________ is the most important factor shown by comparative FS analysis.
It is usually expressed in terms of a base year, thus allowing the manager to observe the __________ of the accounts. |
TREND
direction |
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_________ analysis, _________ analysis , and _________ analysis are tools for FS analysis.
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RATIO analysis
TREND analysis COMPARATIVE STATEMENT analysis |
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In FS analysis, the expressing of all FS figures as a % of base-year figures is called :
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HORIZONTAL COMMON SIZE ANALYSIS
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_________ analysis is the method of FS analysis that computes component % changes.
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VERTICAL
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_______ stock is common stock which has been repurchases by the company and held in its treasury to be resold when the company needs money.
Firm ASSETS and EQUITY is ________ by the amount of the purchase. |
TREASURY
REDUCED |
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Cash basis net revenue =
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NET REV FROM CASH SALE
+ CASH COLLECTED FROM CREDIT SALES ____________________________ Cash basis net revenue CASH COLLECTED FROM CREDIT SALES = net credit sales + decrease in A/R |
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҉
Those segments that meet at least one of the tests represent REPORTABLE SEGMENTS. The test are: |
10% of REVENUE ( 10% or more of the combined rev, internal and external, of all operating segments)
10% of PROFIT or LOSS 10% of ASSETS |
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NET WORTH
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