1 Flashcards
(15 cards)
What is the quick/acid test ratio?
Cash + marketable securities + accounts receivable - allowance for uncollectible / current liabilities
Ex: 1 mil in cash 1.2 mil in current liabilities. 1/1.2 = .83
Average collection period is?
360 / (accounts receivable turnover)
Inventory turnover formula
COGS/ Average inventory
Average inventory= beg. Inventory + ending inventory divided by 2
Average Inventory formula
Average inventory = beginning inventory + ending inventory / 2
Current Ratio Formula
Cash + accounts receivable + inventory + marketable securities / current liabilities
What is the accounts receivable turnover?
Accounts receivable turnover= net credit sales/average accounts receivable
Ex: 21,000/(20000+22000)/2= 5
Price index for dollar value LIFO =
Current year cost later / Base year cost layer
Trading securities and available for sale securities are reported at ?
Market value
A transaction that is unusual in nature or infrequent in occurrence should be reported
As a component of income but NOT net of income taxes
What is the difference between nominal and constant dollars?
Nominal dollars includes inflation, constant does not. In order to calculate inflation subtract constant dollars from nominal dollars.
Under FASB ASC 350 goodwill should be tested periodically for impairment
At the operating segment level or one level below
F.O.B destination title transfers when it arrives at seller.
FOB shipping point when it hits your shipping dock or you hand it to mail carrier.
When dealing with foreign operations under IFRS the proper terms are defined at
Foreign, functional, and presentational
Gross profit percentage
Deferred gross profit/sales for current year
Small stock dividend less than 25% is credited to stock dividends at fair value, large stock dividend credited to retained earning at par value
See above
