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Flashcards in entrance Deck (9)
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1
Q

reliability principle

A

only recording those transactions in the accounting system that you can verify with objective evidence

2
Q

Net working Capital

A

Total current asset- Total current liability

3
Q

current ratio

A

total current asset/ total current liability

4
Q

Debt ratio

A

Total liability/ Total asset

5
Q

Quick Ratio

A

(cash+ short term inventory+ current account receivable)/ Total current liability

6
Q

Account receivable turnover

A

Net Credit Sales/ Average acct recievable

7
Q

Day sales Turnover

A

(inventory*365)/ cost of sales

8
Q

Inventory turnover ratio

A

cost of sales / inventory

9
Q

ROA

A

net income/ avg total asset