Shared Flashcard Set

Details

Ratios
ratios for finals
10
Accounting
Undergraduate 1
12/11/2014

Additional Accounting Flashcards

 


 

Cards

Term
Current Ratio
Definition
Current assets / Current Liabilities
Term
Quick Ratio (acid test)
Definition
Cash + current receivables / Current Liabilities
Term
Accounts receivable Turnover Ratio
Definition
Net sales / (average) of current receivables
Term
Days’ sales in receivables
Definition
365 / Accounts receivable Turnover Ratio
Term
Inventory Turnover
Definition
Cost of good sold / long term liabilities (average)
Term
Days’ sales in inventory
Definition
365 / Inventory Turnover
Term
Debt ratio
Definition
total liabilities / total assets
Term
Times-interest-earned
Definition
income from operations / interest expense
Term
return on sales (ROS)
Definition
Net income / Net sales
Term
return on assets (ROA)
Definition
Net Income + Interest Expense / (average) Total assets
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