Final Exam Flashcards
(16 cards)
Cash Flow statement
operating, investing, and financing, liabilities are the same but assets are the opposite (most go under operations) (depreciation is non cash)
Cash
coins & currency, deposit, cash register, checks, money orders, cashier check
cash equivalent
highly liquid, short term investment, close to maturity date
Internal Controls
establish responsibilities, maintain adequate records, insure assets, seperate recordkeeping, divide responsibilites, apply technological controls, perform regualr reviews
3 common tools of financial analysis
Ratio analysis, trend analysis (horizontal), common size (vertical)
Ratio Analysis
current ratio: current assets/current liabilities
Horizontal Analysis
analysis period amt - base period amt
Vertical Analysis
(analysis amount/ base amount) x 100
Fraud triangle
financial pressure, opportunity, rationalization
Product Costs
Direct materials, direct labor, factory overhead
Period Costs
Expenses not directly tied to the production of goods and services (selling expenses, administrative expenses, and general expenses)
Factory Overhead
Indirect labor, indirect materials, repairs
Contribution Margin
selling price - variable cost (helps generate break even point and additional revenue)
Contribution Margin ratio
(contribution margin / unit)/
(selling price / unit)
Cash budget
estimated receipts and disbursements from/ to all sources
Indirect costs
rent, utilities, insurance, salaries
