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