Exam 2 Accounting

Front 1

Current Assets (asset)
Hint: CIRIPS

Back 1

(1) Cash
(2) Short-term Investments
(3) Receivables
(4) Inventories
(5) Supplies
(6) Prepaid Expenses

Front 2

Long-term Investments (asset)

Back 2

(a) Investments of stock and bonds of other corporations which are normally held for many years
(b) an investment may include land or building that are NOT currently being used in the company's operations

Front 3

Property, Plant, and Equipment (asset)

Back 3

(a) assets with relatively long useful lives
(b) assets used in operating the business
(c) Examples:
Land, Buildings, Machinery, Equipment, Furniture & fixtures

Front 4

Intangible Assets (asset)

Back 4

non-current assets that have no physical substance
Examples: patents, copyrights, trademarks or trade names, franchise

Front 5

Current Liabilities (liability)

Back 5

obligations that are supposed to be paid within the coming year
Examples: accounts payable, wages payable, bank loans payable, unearned revenue payable, interest payable, taxes payable, current maturities of long-term bank loans payable

Front 6

Long-term Liabilities (liability)

Back 6

debts expected to be paid AFTER one year
Examples: bonds payable, mortgages payable, Long-term notes payable, lease obligations, obligations under employee pension plans

Front 7

Stockholder's Equity

Back 7

capital stock (investments of assets in the business by stockholders) & retained earnings (earnings kept for use in the business)

Front 8

Earnings per Share (EPS)

Back 8

answers the question of "How does the company's earnings performance compare with that of previous years (on a per share basis)?

EPS= (Net Income- Preferred stock dividends) / (avg. common shares outstanding)

Hint 8

Disclosed in Income Statement