Reading...
Play button
Play button
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;
35 Cards in this Set
- Front
- Back
|
Balance Sheet
|
Current Assets: Cash+ AR+INV Fixed assets: Net plant and equipment Current Liabilities: AP+Notes Payable+Long term debt Owners' equity: Common Stock+RE |
|
|
Income Statement
|
sales-COGS-Dep=EBIT -INT=Taxable income=Taxes%=Net Income Dividends + retained earnings |
|
|
Working Capital
|
Current assets-current liabilities
|
|
|
Current Ratio
|
Current assets/current liabilities
|
|
|
Quick ratio (acid test)
|
Cast -Inventory+AR/Current Liabilities or Cast + marketable securities + AR/Current Liabilites |
|
|
Receivable turnover
|
Sales on credit/Average of beginning and ending AR (b+e/2)
|
|
|
Number of days' sales in average receivables
|
360/receivables turnover
|
|
|
Number of days' supply in average inv
|
360/inventory Turnover
|
|
|
Inventory turnover
|
COGS/Average of beginning and ending INV (b+e/2)
|
|
|
Length of Operating Cycle
|
Number of days sales in ave receivables + Number of days supply in ave inventory
|
|
|
Debt to Total Assets
|
Total Liabilities / Total assets
|
|
|
Equity Ratio
|
Shareholders funds / Total assets
|
|
|
Debt to Equity
|
Total liabilities / Stockholders equity
|
|
|
Which of the following positions generally report to the CFO
|
Controller and Treasurer
|
|
|
In an over the counter market what are participants called and what do they sale?
|
Participants are called dealers and they sell their own inventory and securities
|
|
|
A good financial decision will do what to shareholders equity and firms existing stock
|
Increase it
|
|
|
Treasure's responsibilities typically include
|
Handling cash flows, Making financial plans, managing capital expenditure decisions.
|
|
|
Capital Structure includes
|
Equity and long term debt
|
|
|
How is ownership transferred in a corporation
|
Ownership is transferred by gifting or selling shares of stock.
|
|
|
In a shareholder/manger relationship who is the agent?
|
Managers
|
|
|
Controllers are responsible for
|
Tax reporting and payments and Financial accounting
|
|
|
In a Sole proprietorship is it easy to transfer ownership?
|
No, the company must be sold to transfer ownership.
|
|
|
What are 3 non-owner stakeholders in a company?
|
Employees, Suppliers, Goverment
|
|
|
The conflict of interest between an agent and a principal is called
|
agency problem
|
|
|
general partnership has what two characteristics
|
Each owner has unlimited liability. It is difficult to transfer ownership.
|
|
|
In a limited partnership, a limited partners liability in the business debt is
|
limited to their contribution to the partnership.
|
|
|
Auction markets in the US
|
The NYSE and The Chicago Stock Exchange
|
|
|
Times Interest earned
|
EBIT/Interest
|
|
|
Cash coverage ratio
|
EBIT+DEP/Interest expense
|
|
|
Price Earning Ratio
|
Market per share/Earning per share
|
|
|
ROA (return on asset/investment
|
annual earnings/total assets
|
|
|
Profit Margin
|
Net Income/Sales
|
|
|
Total debt ratio
|
Total asset-total equity/total asset
|
|
|
Earning per share
|
Net income/shares outstanding
|
|
|
|
|
