What is the formula for the Return on Equity Ratio (ROE)? Net Income / Average Total Assets Net Income / Net Sales Revenue Gross Profit / Net Sales Revenue Net Income / Average Total Stockholders Equity

Net Income / Average Total Stockholders Equity

What is the formula for the Return on Assets Ratio (ROA)? Gross Profit / Net Sales Revenue Net Income / Average Total Assets Net Income / Net Sales Revenue Net Income / Average Total Stockholders Equity

Net Income / Average Total Assets

What is the formula for the Gross Profit Margin Ratio? Gross Profit / Net Sales Revenue Net Income / Average Total Assets Net Income / Net Sales Revenue Net Income / Average Total Stockholders Equity

Gross Profit / Net Sales Revenue

What is the formula for the Earnings per Share Ratio (EPS)? Net Income / Net Sales Revenue Gross Profit / Net Sales Revenue Net Income / Weighted Average Number of Common Shares Outstanding Net Income / Average Total Assets

Net Income / Weighted Average Number of Common Shares Outstanding

What is the formula for the Total Asset Turnover Ratio? Net Income / Average Total Assets Net Sales Revenue / Average Total Assets Net Income / Net Sales Revenue Gross Profit / Net Sales Revenue

Net Sales Revenue / Average Total Assets

What is the formula for the Fixed Asset Turnover Ratio? Net Income / Average Total Assets Net Sales Revenue / Average Net Fixed Assets Gross Profit / Net Sales Revenue Net Income / Net Sales Revenue

Net Sales Revenue / Average Net Fixed Assets

What is the formula for the Receivables Turnover Ratio? Net Income / Average Total Assets Net Income / Net Sales Revenue Net Credit Sales / Average Net Receivables Gross Profit / Net Sales Revenue

Net Credit Sales / Average Net Receivables

What is the formula for the Inventory Turnover Ratio? Net Income / Net Sales Revenue Net Income / Average Total Assets Cost of Goods Sold / Average Inventory Gross Profit / Net Sales Revenue

Cost of Goods Sold / Average Inventory

What is the formula for the Settlement Period for Trade Receivables? Trade Receivables * 365 / Credit Sales Revenue Net Income / Net Sales Revenue Gross Profit / Net Sales Revenue Net Income / Average Total Assets

Trade Receivables * 365 / Credit Sales Revenue

What are cash and cash equivalents? Charging uncollectible accounts to Bad Debt Expense Charges recorded by the bank against depositor's balance Provides accurate end-of-period financials Assets convertible to cash within 3 months

Assets convertible to cash within 3 months

What are temporary investments? Assets held for more than a year Assets convertible to cash within 3 months Estimating uncollectible accounts at period end Companies that buy receivables for a fee

Assets convertible to cash within 3 months

What is a long-term investment? Short-term liabilities Charging uncollectible accounts to Bad Debt Expense Assets held for more than a year Percentage of sales and percentage of receivables

Assets held for more than a year

Which items are commonly mistaken as cash options but are not? Cash held for a specific purpose, not for immediate use Estimating uncollectible accounts at period end Buyer assumes credit risk of uncollectible accounts Post-dated checks, I.O.U.s, travel advances, postage stamps

Post-dated checks, I.O.U.s, travel advances, postage stamps

What is a compensating balance? Expected consideration from a customer for goods/services Estimating uncollectible accounts at period end Minimum balance to offset bank loan costs Percentage of sales and percentage of receivables

Minimum balance to offset bank loan costs

How should bank overdrafts be reported? Errors in recording transactions by bank or depositor Oral promises to pay for goods and services As current liabilities added to accounts payable Prior history, credit score, balance sheet, industry metrics

As current liabilities added to accounts payable

What are receivables? Provides accurate end-of-period financials Short-term liabilities Assets held for more than a year Claims against customers for money, goods, or services

Claims against customers for money, goods, or services

What are current receivables? Minimum balance to offset bank loan costs Buyer assumes credit risk of uncollectible accounts Charging uncollectible accounts to Bad Debt Expense Receivables due within a year or operating cycle

Receivables due within a year or operating cycle

What are accounts receivable? Intentionally underestimating assets and revenues Estimating uncollectible accounts at period end As current liabilities added to accounts payable Oral promises to pay for goods and services

Oral promises to pay for goods and services

in the U.S., the ---- (acronym, four letters) establishes the accounting rules for public financial reporting. those rules are referred to as "GAAp" which stand for ------ normal FASS Generally Accepted Accounting Principles zero cash common stock

FASS Generally Accepted Accounting Principles

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