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100問 • 1年前

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Also known as the units of production method

Service output, method

This method has the advantage of making the unit cause of depreciation constant, and gives low depreciation expense during periods of low production

Service output, method

These are written records that convey the business activities in the financial performance of a company

Financial statements

These are often audited by government agencies, accountants, firm, and such to ensure accuracy and for tax financing or investing purposes

Financial statements

What are the examples of financial statements

Balance sheet, Income statement, Cash flow statement

It is where the use of correct words is absolutely essential when discussing financial statements

Accounting vocabulary

It is the top line of income statement, the money that comes in from customers

Sales and revenue

The bottom line or what is left over from revenue. After all the cost and expenses spent in generating the revenue are substracted.

Profits, earnings, and income

This is the money spent making a product

Cost

These are money spent to develop it, sell it account for it, and this whole, making and selling processes

Expenses

These are placed by customers and signify our request for the future delivery of the products

Orders

It means having enough money in the bank to pay your bills

Solvency

Means that your sales are greater than your cost and expenses

Profitability

This are everything you’ve got the cash in bank and inventory machines building all of it

Asset

Are valuable, and this value must be quantifiable to be listed on the valance sheet

Assets

Everything in a companies, financial statements must be translated into

Peso, and cents

These are those assets that are expected to be converted into cash in less than 12 months

Current assets

Are not converted into cash during the normal course of business

Noncurrent assets

Are economic obligations of the enterprise, such as money that the corporation owes to lenders suppliers and employees

Liabilities

They are categorized and grouped for presentation on the balance sheet

Liabilities

This represents the value value of the corporation that belong to its owners

Shareholders’ equity

A special kind of liability

Shareholders equity

These are the bills that must be paid within one year of the date of the balance sheet

Current liabilities

It is the amount of money left over after you subtract current liabilities from current assets

Working capital

Where is the amount of money the enterprise has to work with in the short term

Working Capital

It feeds the operation of the enterprise with peso bills

Working capital

Working capital is also known as

Net, current assets, or funds

Sometimes gold capital or net worth

Shareholders equity

It is the money that would be left, if a company sold all of its asset, and paid all of it liabilities

Shareholders equity

It is the original amount of money. The owners contributed as their investment in the stock of the company.

Capital stock

All the earnings of the company that have been retained that is not paid out as a dividends owners

Retained earnings

Give following items that are considered to be current assets

Cash in bank, Accounts receivable, Accrued interest receivable, Short term securities, Inventory, Government bonds, Interest earned, Cash in hand, Notes and accounts receivable

Items that are considered fixed assets

Furniture and fixtures, Buildings and factories less depreciation, Machinery with less depreciation, Trucks with less depreciation, Land , Equipment

The following items that are considered assets

Prepaid insurance, Prepaid rentals, Prepaid taxes

Items that are considered current liabilities

Accounts payable, Notes payable, Dividends declared on preferred stock, Taxes, accrued, Declared and unpaid dividends

Items that are considered to be fixed liabilities

Mortgage payable, Reserved for expansion

Items considered liabilities

Advance payment on orders, Prepaid income

It is a report that shows how much revenue accompany earned over a specific time period

Income statement

It shows the cost and expenses associated with earning that revenue

Income statement

The literal bottom line of the statement usually shows the companies net earnings or the losses and tell you how much your company earned or loss over the period

Income statement

It gives one important perspective on the health of a business

Profitability

It is the amount left over from sales after product manufacturing cost are subtracted

Gross margin

Also called as gross profit or the companies manufacturing margin

Gross margin

It means the total amount the company will ultimately collect from a sale that is list price less any discounts offered to the customers to induce purchase

Net sales

It is when a product is shipped and a sale is booked the company records. The total cost of manufacturing the product as cost of goods sold on the income statement.

cost of goods sold

Are those expenditures that is for example, the cash out company makes generate income

Operating expenses

It is also called as SG&A expenses

Operating expenses

SG&A meaning

Sales general, and administrative expenses

Refers to what is left over after expenses, and cost or subtracted from sales

Income from operations

The interest interest or the paying interest on a loan is called

Non-operating expense

Receiving interest interest on cash balance in the company bank account is

Non-operating income

What is the difference between two large numbers one is the seals and two is the cost plus expenses

Net income

What are the two major ways of running a company’s books?

Accrual basis , Cash basis

If income and expenses are measured when the transactions occur, regardless of the physical flow of the cash, it is said to be operating on what basis

Accrual Basis

It is the accounting sales and cost are recorded when the goods are shipped and customers incurred obligation to pay not when they actually pay

Accrual basis

If income is smashed, when cash is received, and expenses are measured when cash is spent, the business is said to be operating on what basis

Cash basis

It is the simplest basis

Cash basis

Income statement and the cash flow statement are

The same

People run their lives and cash basis, but most businesses render books on what basis

Accrual basis

All businesses that maintain inventories of product for sale must use actual accounting to report income according to what

Internal revenue, service, or IRS

It shows for a period of all the actions taken by the enterprise to either decrease or increase assets or liabilities on the balance sheet

Income statement

What does it mean if the enterprises income statement shows income?

The retained earnings are increased on the balance sheet

It reports the companies inflows and outflows of cash

Cash flow statements

This is important because the company needs to have enough cash on hand to pay its expenses and purchase assets

Cash flow statements

It tells you whether a company made a profit

Income state

It tells you whether the company generated cash

Cash flow statement

These are also called collections

Cash receipts

They come from collecting money from customers it increases the amount of cash. The company has on hand.

Cash receipts

Is writing a check to pay for the rent for inventory and supplies or for our workers salary it lowers the amount of cash. The company has on hand.

Cash disbursements

It is the money spent to buy property plant and equipment or also known as the PPNES an investment in the long-term capability of the company to manufacture and sell product

Fixed asset purchases

The difference between any new borrowings in a period and the amount paid back in the period is called

Net borrowings

Paying income taxes to the government decreases the company's supply of cash

Income taxes paid

When people invest in a company stock, they exchange one piece of paper for another

Sale of stock new equity

It is a book or computer memory in which all of the companies. Financial events are recorded in the chronological order. Everything is there nothing is missinh

Journal

It is the book of accounts

Ledger

It is any grouping of items that we want to keep track of

Account

It is the most useful when you wish to compare year to year performance to determine if things are getting better, or getting worse for the enterprise, or compare companies in an industry, to which is performing best given common constraints

Ratio analysis

What are the common ratio indicators?

Liquidity, Asset management, Profitability, Leverage

Measure the east, with which accompany can pay its bills when due

Liquidity ratios

Disability is determined by which, or weathered enterprise, has cash in the bank, or expects to generate cash, and sufficient amount to pay its bills as they become due

Liquidity ratios

It is one of the oldest and best known measures of short-term financial strength

Current Ratio

This ratio determines whether current assets are sufficient to pay current liabilities

Current Ratio

It is considered a current ratio for good when a general manufacturing company is above

2.0

What is the ratio that means that the company can just meet its upcoming bills?

1:1

What does it mean when there is a big financial cusion?

2:0

Is an even more conservative measure of liquidity than the current ratio

Quick ratio

Sometimes called the acid test

Quick ratio

It is the company’s quick assets

Quick ratio

It provides a tool investigate, how effective in generating profits, the companies investment in accounts receivable, inventory, and fixed assets is

Asset management ratio

Measures the volume of a business it can be conducted with the given investment and inventory

Inventory Turn

There is some more general measure of efficient asset use. It shows the sales value The company can support with a given level of assets

Asset Turn ratio

It is the average length of time the companies account receivable are outstanding that is how long between when the goods are shipped, and when the customer pays

Receivable days

Receivable days ratio is also known as

Average collection period

are common "return on" ratios: "return on sales," "return on assets and so forth. It relate profits to some other piece of financial information such as sales, equity or assets. These ratios measure some aspects of management's operating efficiency; that is, management's ability to turn a profit given a level of resources.

Profitability ratios

This is a ratio that measures management, success, and employing the companies assets to generate a profit

Return on assets

It is a ratio that measures management success in maximizing return on the owners investment

Return on equity

Also known as the return on investment

Return on equity

Also known as the profit margin

Return on sales

It compares what is left over after all expenses and cost are subtracted from sales

Return on sales

100

(also called"gross profit'") measures how much it costs to make a company's products and, consequently, how much the company can afford to spend in SG&A and still make a profit.

Gross Margin

GEL

Geneva Pahil · 63問 · 1年前

GEL