Accounting calculations Flashcards
1
Q
cumulative preferred dividends
A
par value * dividend rate + all dividends in arrears
2
Q
straight-line depreciation
A
cost of asset - salvage value / useful life of asset
3
Q
goodwill
A
purchase price of company - (fair market value of assets - fair market value of liabilities)
4
Q
Stockholders’ equity
A
Beginning stockholders equity + Net income - dividends
5
Q
allowance for bad debt expense
A
ending allowance - existing allowance
6
Q
dividends to common shareholders
A
amount leftover after preferred shareholders paid out
7
Q
bond retirement
A
paid on retirement - carrying value
