Term
| What part of the accounting equation represents nonowner financing? |
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Definition
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Term
| What part of the accounting equation does represents owner financing? |
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Definition
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Term
| What part of the accounting equation represents financing activities? |
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Definition
| Liabilities and Equity combined |
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Term
| What part of the accounting equation represents investing activities? |
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Definition
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Term
| Why do technology companies tend to be equity (owner financing) heavy compared to liabilities? |
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Definition
| Technology companies are inherently risky due to the speed of innovation and, therefore, can't sustain high levels of liabilities. |
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Term
| Which financial statement represents a company's financial position at a point in time? |
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Definition
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Term
| Which financial statement represents a company's performance over a period of time? |
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Definition
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Term
| Which financial statement represents a company's change in cash balance over a period of time? |
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Definition
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Term
| Which financial statement does the accounting equation apply to? |
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Definition
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Term
| Of assets, liabilities and equity in accounting equation does retained earnings show up? |
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Definition
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Term
| What is the portion of net income which is retained by a corporation rather than distributed to its owners? |
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Definition
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Term
| How do you compute return on assets? |
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Definition
| Net income / average assets for period |
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Term
| If a company has sales of 100,000 with a cost of goods of 60,000 what's the retained earnings? |
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Definition
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Term
| What part of the accounting equation does retained earning get applied to? |
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Definition
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Term
| Does the airing of prepaid advertising have any effect on retained earnings? |
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Definition
| Yes, it reduces retained earnings |
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Term
| What two parts of the accounting equation are impacted by paying an expenses? |
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Definition
| Both assets and equity (retained earnings) are reduced |
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Term
| How does accrued, unpaid liabilities (e.g. earned employee salary) impact the accounting equation? |
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Definition
| It increases liabilities and decreases equity (retained earnings) |
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Term
| Does the fluctuation in common stock price effect a company's balance sheet? |
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Definition
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Term
| Assume a company acquires another company. How is goodwill computed |
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Definition
| Take purchase price and subtract estimated value of all assets. |
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Term
| What do you call a contractual agreement a lender puts on a borrower? |
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Definition
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Term
| What does GAAP stand for? |
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Definition
| Generally Accepted Accounting Principles |
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Term
| What does IFRS stand for? |
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Definition
| International Financial Reporting Standards |
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Term
| Which of the 10-K and 10-Q are filed annually? How often is the other filed? |
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Definition
| 10-K, 10-Q is filed quarterly except when 10-K is due. |
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Term
| What does SG&A stand for? |
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Definition
| Selling, General & Administrative expenses |
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Term
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Definition
| marketing, salaries, depreciation |
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Term
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Definition
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Term
| What are the two types of EPS? |
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Definition
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Term
| What's the difference between diluted and basic EPS |
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Definition
| Diluted EPS tries to account for future shares |
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Term
| What is inventory turnover? |
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Definition
| The number of times inventory is sold or used over a certain time period (e.g. year) |
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Term
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Definition
| Regulation of Fair Disclosure. It mandated that all publicly traded companies must disclose material information to all investors at the same time (read: curbs selective disclosure) |
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Term
| What does IASB stand for? |
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Definition
| International Accounting Standards Board |
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Term
| Which accounting standards does the IASB manage? |
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Definition
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Term
| What does FASB stand for? |
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Definition
| Financial Accounting Standards Board |
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Term
| What accounting standard does the FASB manage? |
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Definition
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Term
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Definition
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Term
| Sales less cost of sales is what? |
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Definition
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Term
| Can stock owners bankrupt a company? |
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Definition
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Term
| What's another name for stock buy-backs a company may make? |
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Definition
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Term
| How does treasury stock effect EPS |
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Definition
| Increases EPS by reducing the number of available stocks while leaving earnings alone. |
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Term
| What three basic types of activities are represented in a statement of cash flows? |
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Definition
| Operating activities, investing activities and financing activities. |
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Term
| How do you calculate inventory turnover? |
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Definition
| Cost of goods sold / avg of assets over a period of time (typically 2yrs) |
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