Shared Flashcard Set

Details

Accoutning
Ratios
19
Accounting
Undergraduate 2
05/05/2006

Additional Accounting Flashcards

 


 

Cards

Term
Current Ratio
Definition
Current assets / current liabilities = to 1
Term
Quick ratio or acid test ratio
Definition
Cash + marketable securities + net recievables / current liabilities = to 1
Term
Receivables turnover
Definition
Net sales / average net receivables = times
Also # of days: 365 / times (Answer)
Term
Inventory turnover
Definition
Cost of Goods Sold / average inventory = times
# of days: 365 / times (answer)
Term
asset turnover
Definition
net sales / average total assets
Term
profit margin on sales
Definition
net income / net sales
Term
rate of return on assets
Definition
net income / average total assets
Term
earnings per share
Definition
net income - preferred stock dividneds / average common stockholders equity
Term
working capital
Definition
current assets - current liabilities
Term
price earnings ratio
Definition
market price / earnings per share = times
Term
Dividends per share
Definition
Dividneds / # of shares
Term
three designations of stock
Definition
Authorized, Issued, and Outstanding
Term
Authorized
Definition
Permission
Term
Issued
Definition
total sold
Term
Outstanding
Definition
Still outstanding (total sold - Treasury stock)
Term
Dividends we owe
Definition
Dividends in arears
Term
Dividends become
Definition
Cash dividends payable
Term
stock dividends (large)
Definition
Par
Term
Stock dividends (small)
Definition
FMV
Supporting users have an ad free experience!