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18 Cards in this Set

  • Front
  • Back
Straight Line Depreciation
(cost - residual value) x 1/useful life
Per Unit Depreciation
(cost - rv)/estimated total production x actual units produced
Double Declining Balance
(cost - dep. expense) x 2/useful life
income/avg. owner's equity
Return on Assets
income + interest expense/avg. of total assets
Current Ratio
current assets/current liabilities
Quick Ratio
quick assets/current liabilities
Receivable Turnover
net credit sales/average net receivables
Inventory Turnover
cost of goods sold/average cost of inventory
Times Interest Earned
net income + int. expense + income tax expense/interest expense
Debt to Equity
total liabilities/owner's equity
When the item increases, add it to the balance
(indirect method)
Depreciation and Amortization
Accounts Payable
Accrued Expense Liabilities
When the item increases, subtract it from the balance
(indirect method)
Accounts Receivable
Prepaid Expenses
Sales Revenue
+ decrease in AR
- increase in AR
Interest/Dividend Revenue
+ decrease in I/D Rec.
- increase in I/D Rec.
+ increase in inventory
+ decrease in accounts payable
Other Expenses
+ increase in prepaid expenses
+ decrease in accrued expenses
Income Tax Expense
+Increase in Prepaid Income Taxes
+Decrease in Income Taxes Payable