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;
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
|
|
ROE
|
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
Inventory Prepaid Expenses |
|
Sales Revenue
|
+ decrease in AR
- increase in AR |
|
Interest/Dividend Revenue
|
+ decrease in I/D Rec.
- increase in I/D Rec. |
|
CGS
|
+ 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 |