exam 4 Flashcards
operating assets
the assets of a company that contribute to generating revenue
working capital assets
the difference between a company’s current assets and its current liabilities
straight line formula
cost-salvage / life
double declining balance
(cost-acc depreciation)x 2/life
price to earnings ratio
market per share/earnings per share
liquidation
money back first (preferred stock)
treasury stock
stock a company owns itself and can be given to own employees. contra equity. debt (-)
goodwill
what you pay in addition to what something is actually worth. (never depreciates) amount you bought-what it is actually worth
net realizable value
cost - acc depreciation
units of production
cost-salvage/total estimated units x units produced
preferred stock
convertable, get money back
why do businesses use stock dividends and stock splits?
to make the shares more affordable for customers to purchase
mannual stop
accumulative depr / net book value
