Accounting Peregrine Exam
Acid check ratio (short ratio) - ANS-(Current Assets - Inventory) / Current Liabilities
Activity-based totally costing (ABC) - ANS-Approach to costing that focuses on person sports as
the fundamental value gadgets. It uses the charges of these sports as the premise for assigning
prices to different cost items such as services or products.
Asset Turnover - ANS-net income/common general belongings
Assets - ANS-resources owned by a enterprise
Average Collection Period - ANS-365/money owed receivable turnover
Basic Financial Statements - ANS-income assertion, balance sheet, cash float assertion
Break even point in devices - ANS-constant costs / contribution margin in step with unit
Break-even point - ANS-net income at breakeven point are identical to 0
Cash Budgeting - ANS-shows predicted cash flows, usually over a one to two yr length
Common Stock - ANS-investments of assets into the business by the stockholders
Comparability - ANS-Ability to compare the accounting facts of various organizations due to the
fact they use the same accounting concepts.
Conservatism Principle - ANS-the technique of choosing an accounting approach a good way to
least possibly overstate assets and net income
Consistency - ANS-use of the equal accounting principles and methods from year to year inside
a company
Contribution Margin - ANS-The amount final from sales sales in spite of everything variable
prices were deducted.
Contribution margin in line with unit - ANS-unit selling fee - variable fee according to unit
Conversion Costs - ANS-Direct Labor + Manufacturing Overhead
, Cost of Capital - ANS-Treynor Industries is investing in a brand new assignment. The minimum
fee of go back the corporation requires in this challenge is known as the:
Cost Principle - ANS-A precept that states that received belongings and offerings have to be
recorded at their real fee.
Cost-Benefit constraint - ANS-most effective data with advantages of disclosures greater than
the costs of providing it want be disclosed
modern belongings - ANS-gadgets that can or might be transformed into coins inside 365 days
Current Ratio - ANS-modern assets/contemporary liabilities (liquidity)
Days in inventory - ANS-Average Inventory / (COGS/365)
Debt to Equity Ratio - ANS-general liabilities/owner's fairness
Declining Balance Depreciation - ANS-A method of multiplied depreciation allowed by using the
IRS in certain situations. Double Declining Balance Depreciation is its maximum commonplace
shape and is computed by way of using double the rate used for instantly line depreciation.
Depreciation - ANS-the process of allocating the price of an asset to fee over its useful lifestyles
Direct Labor - ANS-the paintings of manufacturing facility personnel that may be bodily and
immediately associated with changing raw materials into completed goods
Direct Materials - ANS-Raw substances that may be physically and directly associated with
manufacturing the completed product.
Economic Entity Assumption - ANS-every monetary entity can be one after the other recognized
and accounted for
Equity - ANS-the proprietor's claims to the assets of the business
Favorable Variance - ANS-will increase running earnings relative to the budgeted amount
Free Cash Flow - ANS-net coins furnished by means of working activities - capital prices - cash
dividends
Full Disclosure Principle - ANS-A organisation reviews info at the back of monetary statements
that might impact users' decisions.
Going Concern Assumption - ANS-Entity will hold to perform long sufficient to get better the fee
of its property
Acid check ratio (short ratio) - ANS-(Current Assets - Inventory) / Current Liabilities
Activity-based totally costing (ABC) - ANS-Approach to costing that focuses on person sports as
the fundamental value gadgets. It uses the charges of these sports as the premise for assigning
prices to different cost items such as services or products.
Asset Turnover - ANS-net income/common general belongings
Assets - ANS-resources owned by a enterprise
Average Collection Period - ANS-365/money owed receivable turnover
Basic Financial Statements - ANS-income assertion, balance sheet, cash float assertion
Break even point in devices - ANS-constant costs / contribution margin in step with unit
Break-even point - ANS-net income at breakeven point are identical to 0
Cash Budgeting - ANS-shows predicted cash flows, usually over a one to two yr length
Common Stock - ANS-investments of assets into the business by the stockholders
Comparability - ANS-Ability to compare the accounting facts of various organizations due to the
fact they use the same accounting concepts.
Conservatism Principle - ANS-the technique of choosing an accounting approach a good way to
least possibly overstate assets and net income
Consistency - ANS-use of the equal accounting principles and methods from year to year inside
a company
Contribution Margin - ANS-The amount final from sales sales in spite of everything variable
prices were deducted.
Contribution margin in line with unit - ANS-unit selling fee - variable fee according to unit
Conversion Costs - ANS-Direct Labor + Manufacturing Overhead
, Cost of Capital - ANS-Treynor Industries is investing in a brand new assignment. The minimum
fee of go back the corporation requires in this challenge is known as the:
Cost Principle - ANS-A precept that states that received belongings and offerings have to be
recorded at their real fee.
Cost-Benefit constraint - ANS-most effective data with advantages of disclosures greater than
the costs of providing it want be disclosed
modern belongings - ANS-gadgets that can or might be transformed into coins inside 365 days
Current Ratio - ANS-modern assets/contemporary liabilities (liquidity)
Days in inventory - ANS-Average Inventory / (COGS/365)
Debt to Equity Ratio - ANS-general liabilities/owner's fairness
Declining Balance Depreciation - ANS-A method of multiplied depreciation allowed by using the
IRS in certain situations. Double Declining Balance Depreciation is its maximum commonplace
shape and is computed by way of using double the rate used for instantly line depreciation.
Depreciation - ANS-the process of allocating the price of an asset to fee over its useful lifestyles
Direct Labor - ANS-the paintings of manufacturing facility personnel that may be bodily and
immediately associated with changing raw materials into completed goods
Direct Materials - ANS-Raw substances that may be physically and directly associated with
manufacturing the completed product.
Economic Entity Assumption - ANS-every monetary entity can be one after the other recognized
and accounted for
Equity - ANS-the proprietor's claims to the assets of the business
Favorable Variance - ANS-will increase running earnings relative to the budgeted amount
Free Cash Flow - ANS-net coins furnished by means of working activities - capital prices - cash
dividends
Full Disclosure Principle - ANS-A organisation reviews info at the back of monetary statements
that might impact users' decisions.
Going Concern Assumption - ANS-Entity will hold to perform long sufficient to get better the fee
of its property
