ACCT 2121 Final Review - Extras Flashcards
if sales revenue increases (i/s)
cash increases (b/s)
if cogs increases (i/s)
inventory decreases (b/s)
moh includes:
indirect materials (cleaning, lubricants/oils, and other supplies), indirect labor (inspector, maintenance), operating expenses (utilities, rent, depreciation)
direct labor includes:
in-factory workers wages
working capital (equation)
= currents assets - current liabilites
current ratio (equation)
= currents assets/current liabilities
inventory turnover (equation)
= cogs/avg. inventory ((y1+y2)/2)
debt to total assets (equation)
= total liabilities/total equities (liabilities + SE)
gross profit ratio (equation)
= gross profit/net sales (revenue)
*gp = net sales - cogs
profit margin (equation)
= net income/net sales
return on assets (equation)
= net income/avg. total assets ((y1+y2)/2)
sales revenue (equation)
= q * sp/unit
is preferred stock a contra account?
no
preferred stockholders (equation)
= q * rate * p
common stock (equation)
= cash dividend - preferred stockholders
upon maturity, the carrying value of bonds payable is equivalent to:
face value
if marketed interest rate is higher than stated interest rate then:
you are financing at a discount
higher gross margin/net income:
better company
sometimes treasury stock is reissued to:
corporate execs. as bonus and comp.
depreciation rate (equation)
= (hc - sv)/useful life (in units)
* (hc-sv) = depreciable max
net book value (equation)
= hc - (a/d) = cv
what should you include in historical cost?
trial run
smallest of the big 4 accounting firms?
kpmg
sales revenue contra accounts
sales revenue and allowances & sales discounts (to equal net sales)
accounts receivable contra account
allowance for doubtful accounts (to equal net realizable value/net a/r)
ppe contra account
accumulated depreciation (to equal net ppe)
bonds payable contra accounts
discount on bonds payable and *+ premium on bonds payable - only contra acct we add (to equal net bonds payable)
