The Balance Sheet/ Income statement

Question 1

What is the Balance Sheet also called ?

Answer 1

The Statement of Financial Position

Question 2

What is the Current Ratio ?

When is it used ?

Answer 2

Current Assets/ Current Liabilities

It is used to measure liquidity

Question 3

Whats is the Quick or Acid- test ratio?

When is it used ?

Answer 3

Cash + Short term investments + Account Receivable/ Current Liabilities
It is used for a more accurate measure of liquidity

Question 4

What is General & Admin Cost?

Answer 4

Includes cost that serves the entire firm. Ex. Accounting & Legal fees, Officers Salaries, Insurance

Question 5

What are the components of Comprehensive Income?

Answer 5

Unrealized Gain/Loss on A.F.S. debt securities, Pension cost, foreign currency translation adjustments, certain derivative transcation

Question 6

Comprehensive Income Formula

Answer 6

Net Income + Other Comprehensive Income= comprehensive Income

Question 7

Income Tax Expense

Answer 7

Is attributable only to income from continuing operations

Question 8

Intraperiod Tax Allocation

Answer 8

tax effects - discountined operations, OCI items, Adjustments for retroactive accounting principle changes, and prior period adjustments

Question 9

Accumulated other comprehensive income

Answer 9

The amount carried over from the previous period and then either increased or decreases during the current period. ( owners equity account)