Final Exam Flashcards
Return On Equity
Test of Profitability
Net Income ÷ Average Stockholders’ Equity
Return on Assets
Test of Profitability
Earnings Per Share
Test of Profitability
Net Income ÷ Average Number of Shares of Common Stock Outstanding
Profit Margin
Test of Profitability
Net Income ÷ Net Sales Revenue
Current Ratio
Test of Liquidity
Current Assets/Current Liabilities
Quick Ratio
Test of Liquidity
Recievable turnover ratio
Test of liquidity
Inventory Turnover ratio
Test of liquidity
Accounts Payable Turnover Ratio
Test of Liquidity
Times interest earned Ratio
Test of sovency
Price to earnings ratio (P/E) ratio
Market tests
Debt to Equity Ratio
Test of liquidity
Total Liabilities ÷ Stockholders’ Equity
Dividend Yield
Market Test
Retained earnings Equation
Beg RE + NI – Dividends = ending retained earnings
Issue Stock
Cash
Common Stock
Capital in Excess of par
Repurchase stock
Treasury Stock
Cash
Selling Treasury Stock for more then you paid
Cash
Treasury Stock
Capital in excess of par
Selling Treasury Stock for less than you paid
Cash
Capital in excess of par
Treasury Stock
Stock Dividend (<20%)
Retained Earnings
Common Stock
Capital In excess of par
Large Stock Dividend
Retained Earnings
Common Stock
Bond issue formula
FaceValuePV(periods,marketInterestRate)+ InterestPVA(periods,MarketInterestRate)
Call on Bonds Journal Entry (premium)
Bonds Payable
Loss on Bonds Called
Premium on Bonds Payable
Cash
Call on Bonds Journal Entry (discount)
Bonds Payable
Loss on Bonds called
Discount on BP
Cash
