What is the formula for calculating working capital? Current Assets - Current Liabilities Net Income - Expenses Revenue - Expenses Total Assets - Total Liabilities

Current Assets - Current Liabilities

What is the formula for calculating the current ratio? Total Assets / Total Liabilities Current Assets / Current Liabilities Cash Flow / Total Debt Net Income / Total Revenue

Current Assets / Current Liabilities

Accounting Principles and Financial Statement Analysis: Methods, Ratios, and Interpretations

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(33)

What accounting method records revenues when they are earned, regardless of when cash is received?

Which principle states that revenue should be recorded when the earnings process is complete?

What concept involves matching expenses with the revenue generated during a period?

What is the term for all accounts of a company taken together?

What is the process of transferring debit and credit amounts from the journal to the ledger called?

What type of accounts have opposite debit/credit rules of what they are contra to?

What term describes a company's ability to pay its debts as they come due in the form of a dollar amount?

What is the formula for calculating working capital?

What ratio gives a user a feel for the company's ability to pay its debts as they come due in the form of 'number of times'?

What is the formula for calculating the current ratio?

Which ratio tells us how many times a company can pay its short-term debts?

What is the formula for calculating the acid test ratio?

What are measures of the short-term ability of the company to pay its debts as they come due?

When selling inventory, you must debit _____ and credit _____ to match the cost of goods sold with sales revenue.

What is it called when a company pays for an expense item in advance?

Prepayments become an expense when the asset is _____?

What is it called when a company receives cash in advance for services and goods to be delivered later?

Unearned revenue only becomes a revenue when the company actually _____ the service or delivers the good.

What are revenues earned but not yet received in cash or recorded called?

What are expenses incurred but not yet paid in cash or recorded called?

What is the allocation of the cost of a plant asset to expense over its useful life called?

What is the total amount of the building or equipment that has been used up since it was acquired by the company?

What is the amount of plant assets used up in the current year called?

What is the formula for calculating annual depreciation expense?

What is the equation for calculating interest?

What is it called when a company borrows money and must repay it with interest?

What is it called when a company lends money to someone and is to be repaid with interest?

What type of accounts are closed at the end of the accounting period?

What accounts are included in nominal accounts?

What type of accounts are not closed at the end of the accounting period?

What accounts are included in permanent accounts?

To close out an account, you must do the _____ of normal.

What type of account results in a decrease of an asset?

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