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11 Cards in this Set
- Front
- Back
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What is a current asset?
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Cash plus other assets that are expected to be sold or converted to cash during the current operating cycle
Includes: Demand deposits, cash equivalents, accounts receivable, inventory, pre-paids, and short-term investments |
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What is a current liability?
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A liability expected to be paid within 12 months or less
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How is the Quick Ratio calculated?
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(Cash + A/R + Trading Securities)
Current Liabilities |
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How is the Current Ratio calculated?
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Currents Assets
Current Liabilities |
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How is Working Capital calculated?
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Currents Assets - Current Liabilities
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How is A/R Turnover calculated?
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Credit Sales
Average A/R |
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How is Inventory Turnover calculated?
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COGS
Average Inventory |
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How is Day Sales in Inventory calculated?
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365
Inventory Turnover |
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How is Days to Collect A/R calculated?
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Average A/R
Average Sales per Day |
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How are gain contingencies recorded?
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They are NOT accrued due to Conservatism
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When are loss contingencies recorded?
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