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Financial Acct
Question | Answer |
---|---|
Current Ratio | Current Assets/Current Liabilities |
Current Ratio use | Does the company have the current ratio measures a company's ability to pay short-term obligations with short-term assets—a liquidity measure/low level of liquidity, below 1.0, |
Investing | Investing activities include buying and selling noncurrent assets and investments. |
Financing | Financing activities include borrowing and repaying debt, including short-term bank loans, issuing and repurchasing stock, and paying dividends. |
what is shown in Cash flow | You must see cash in the transaction for it to affect the statement of cash flows |
debit | left side |
credit | right side |
Stockholders' equity— | Stockholders' equity—the financing provided by the owners and by business operations. |
Liabilities— | Liabilities—probable debts or obligations acquired by the entity as a result of past transactions, to be paid with assets or services. |
Assets— | Assets—probable future economic benefits owned by the entity as a result of past transactions. |
accounting equation: | Assets = Liabilities + Stockholders' Equity |
statement of cash flows | statement of cash flows reports the sources and uses of cash for the period by the type of activity that generated the cash flow:operating, investing, and financing |
Revenues | REVENUES are increases in assets or settlements of liabilities from ongoing operations. are defined as increases in assets or settlements of liabilities from ongoing operations of the business. |
expenditure | expenditure is any outflow of cash for any purpose, |
Expenses | are decreases in assets or increases in liabilities from ongoing operations incurred to generate revenues during the period. |
Operating Income | Subtracting operating expenses from operating revenues gives Operating Income |
Earnings per share | Net Income ÷ Average Number of Shares of Stock Outstanding) |