ACCT 201A FINAL EXAM
REVIEW CSUF
Working Capital
current assets - current liabilities
Current Ratio
current assets - current liabilities
Debt to Assets Ratio Formula
Total Debt/Total Assets
AR turnover ratio
Net Credit Sales/Average AR
Inventory Turnover Ratio
COGS/Average Inventory
Gross Profit Rate
Gross Profit/Net Sales
Profit Margin Ratio
Net Income/Net Sales
Income Statement
A financial statement showing:
Revenues
Expenses
Net Income
Net Income is needed to determine the...
...ending balance in Retained Earnings.
Retained Earnings Statement
A financial statement that summarizes the amounts and causes of changes in retained
earnings for a specific time period:
,Retained earnings, starting date
Add: Net Income
Less: Dividends
Retained earnings, end date.
Balance Sheet
A financial statement that reports assets, liabilities, and stock holders' equity on a specific
date:
Assets
Liabilities and Stockholders' Equity
Liabilities
Stockholders' equity
Ending balance in retained earnings is need in preparing...
...the balance sheet.
Statement of Cash Flows
A financial statement that provides financial information about the cash receipts and cash
payments of a business for a specific period of time:
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net Increase in cash
Cash at beginning of period
Cash at end of period
What are the 4 component of the assets section in a Classified Balance Sheet?
, Current assets
Long-term investments
Property, plant, and equipment
Intangible assets
What are the 3 components of the liabilities and stock holders' equity section in a Classified
Balance Sheet?
Current liabilities
Long-term liabilities
Stockholders' equity
Liquidity Definition
Measures short-term ability of the company to pay its maturing obligations and to meet
unexpected needs for cash.
Solvency Definition
Measures the ability of the company to survive over a long period of time.
Profitability Definition
Measures the income or operating success of a company for a given period of time.
Generally Accepted Accounting Principles (GAAP)
A set of rules and practices, having substantial authoritative support, that the accounting
profession recognizes as a general guide for financial reporting purposes.
Comparability Definition
Ability to easily evaluate one company's results relative to another's.
Going Concern Definition
Belief that a company will continue to operate for the foreseeable future.
Materiality Definition
The judgment concerning whether an item is large enough to matter to decision-makers.
REVIEW CSUF
Working Capital
current assets - current liabilities
Current Ratio
current assets - current liabilities
Debt to Assets Ratio Formula
Total Debt/Total Assets
AR turnover ratio
Net Credit Sales/Average AR
Inventory Turnover Ratio
COGS/Average Inventory
Gross Profit Rate
Gross Profit/Net Sales
Profit Margin Ratio
Net Income/Net Sales
Income Statement
A financial statement showing:
Revenues
Expenses
Net Income
Net Income is needed to determine the...
...ending balance in Retained Earnings.
Retained Earnings Statement
A financial statement that summarizes the amounts and causes of changes in retained
earnings for a specific time period:
,Retained earnings, starting date
Add: Net Income
Less: Dividends
Retained earnings, end date.
Balance Sheet
A financial statement that reports assets, liabilities, and stock holders' equity on a specific
date:
Assets
Liabilities and Stockholders' Equity
Liabilities
Stockholders' equity
Ending balance in retained earnings is need in preparing...
...the balance sheet.
Statement of Cash Flows
A financial statement that provides financial information about the cash receipts and cash
payments of a business for a specific period of time:
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net Increase in cash
Cash at beginning of period
Cash at end of period
What are the 4 component of the assets section in a Classified Balance Sheet?
, Current assets
Long-term investments
Property, plant, and equipment
Intangible assets
What are the 3 components of the liabilities and stock holders' equity section in a Classified
Balance Sheet?
Current liabilities
Long-term liabilities
Stockholders' equity
Liquidity Definition
Measures short-term ability of the company to pay its maturing obligations and to meet
unexpected needs for cash.
Solvency Definition
Measures the ability of the company to survive over a long period of time.
Profitability Definition
Measures the income or operating success of a company for a given period of time.
Generally Accepted Accounting Principles (GAAP)
A set of rules and practices, having substantial authoritative support, that the accounting
profession recognizes as a general guide for financial reporting purposes.
Comparability Definition
Ability to easily evaluate one company's results relative to another's.
Going Concern Definition
Belief that a company will continue to operate for the foreseeable future.
Materiality Definition
The judgment concerning whether an item is large enough to matter to decision-makers.
