Extra Flashcards
1
Q
Quick ratio
A
Assets / current liabilities
2
Q
Times Intrest Earned Ratio
A
TIE = EBIT ( earnings before interest & taxes. / total interest expenses
3
Q
Accumulated Depreciation Account
A
Contra asset account
Track total amount of an assets depreciation, since put in use.
4
Q
Gross Profit
A
Sales - COGS (cost of goods sold)
5
Q
Book Value of an Asset
A
Difference between cost of a fixed asset and accumulated depreciation
6
Q
Contra accounts will have an opposite normal balance
A
7
Q
PP&E
or
Plant Assets
A
Property, plant, & Equipment
determining acquisition cost
1) Purchase price
2) Incidentals
3) interest on financing
4) other costs fees, taxes, development commissions
8
Q
Computing depreciation
or
Determining depreciation expense
A
1) initial cost
2) estimated useful life
3) estimated residual value
