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Flashcards in 4 Deck (20):
1

Statement of cash flows :

is required for all except investment type entities

2

Statement of cashflows must report the following categories:

operating, investing, financing, foreign currency translation,

3

What is different between the direct/indirect method for statement of cashflows?

Presnetation

4

Direct method of operating activities ocnsists of:

deriving net cash provided buy operating activities by adjusting accrual basis to cash basis.

5

The first footnote is

usull ya summary of significant accounting policies

6

Summary of significant accouting policies reports

chosen depreciaiton method, method of valuing inventory, securities classified as cahs and cash equivalents, basis for consolidation

7

Related party transactions must be disclosed and include:

the nature of ther elationship between related entities, description of all related party transactions for the accounting year, dollar amounts of transactions, any receivables/payables

8

Noncurrent liability disclosures

combined aggregate amount of maturities on borrowings for each of the five years folllowing the balance sheet, sinking fund requirements, aggregate amount of payments for unconditional obligations to purchase fixed or minimum amounts of goods/services, fair value of each financial debt

9

Capital structure disclosures

company required to provide the finformation related to capital structure.

10

Error and irregulartiies disclosures

Is required footnote disclosure. Illegal acts should be disclosed the nature and impact

11

working capital

cA-Cl

12

Acid test ratio

Cash + receivables + Marketable securities/ Current Liabiltiies

13

Securities defensive interval ratios =

Cash + receivable + Marketable Securities ) / Average daily cash expenditures

14

Times interest earned ratio

Net income + interest expense + Income Tax ) /interest expense

15

times preferred dividend earned ratio

Net Income / Annual preferred divdend obligation

16

Accounts receivable turnover

Net Credit Sales / Avg AR

17

Number of days sales in AR

365/ AR Turnover

18

Inventory Turnover

COGS / Avg Inventory

19

number of days supply in inventory

365 / Invenotry turnover

20

Operating numbr of cylce

Numebr of days sales in A/R + lengt cycle number of says supply in inventory