Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Fin Acct > ratios > Flashcards

ratios Flashcards

1
Q

Gross profit margin ratio

A

Net sales - COGS / Net sales
shows margin revenue above COGS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Accounts receivables turnover

A

Net credit sales / Average Acc. receiv.

determines how often acc rec are collected

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Avg Accounts receivables

A

begin. acc rec + end. acc rec / 2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Number of days’ sales in receivables

A

365 / acc. receivables turnover

shows expexted days to turn acc rec into cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Net Purchases

A

Gross purchases - Purchase discounts - Purchase returns & allowances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Net Sales

A

Gross sales - Sales discount - Sales returns & allowances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

COGS

A

beginning inv. + Net purchases - ending inv.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Gross margin

A

Net sales - COGS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Income from operations

A

Gross margin - Operating expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Net realizable value

A

acc receiv. - allowances for doubtful accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Inventory turnover ratio

A

COGS / Avg. inv

measures the number of times an avg quantity of inventory was bought/sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Number of days’ sales in inventory

A

Avg. merch. inv / Avg. daily COGS

how many days it would take to clear remaining inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Avg. daily COGS

A

COGS / 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Fixed Asset turnover

A

Net sales / Avg. net Fixed assets

sales generated by each dollar of fixed assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Total goods available for sale

A

begin. inv + purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

goodwill

A

paid price - book value of net assets

17
Q

straight line depreciation

A

(acquisition cost - salvage value) / useful life

18
Q

units of production depreciation

A

depreciable base / usage

19
Q

double declining balance

A

2 × 100 / useful life x book value

20
Q

depletion cost per unit

A

total cost - residual value / estimated units

21
Q

interest

A

principal × interest rate × period of time

22
Q

Debt to equity ratio

A

Total debt / Total equity

measures portion of debt used by a company relative to stockholders equity

23
Q

Earnings per share EPS

A

Net income - Preferred dividends /
Weighted avg. com. shares outst.

portuon of corporations profit allocated to each outstanding share of common stock

24
Q

quote

A

current market price /
maturity value × 100

25
Q

interes payment

A

stated rate × face value

26
Q

interest expense

A

market rate × carrying value

27
Q

Amortization of a loan

A

date, beginning balance, payment, to interest, to principal, ending balance

28
Q

Amortization of a bond payable at discount

A

date, interest expense, interest payment, amortization, discount bal, bonds payable, book value

29
Q

Amortization of a bond at premium straight line

A

date, bonds payable, premium bal, amortization, book value

30
Q

Amortization of a bond payable on premium

A

date, interest payment, interest expense, amortization, premium balance, bonds payable, book value

31
Q

working capital

A

current assets - current liabilities
(what is left after current liabilities are covered)

32
Q

current ratio

A

current assets / current liabilities
proportion

33
Q

quick ratio

A

Cash + Short term investment + Ac rec / Current liabilities

34
Q

interest earned

A

Earnings before interest and taxes / Interest expense

ability to pay interest

35
Q

total asset turnover

A

Net sales / Average total assets

ability to use assets to make revenue

36
Q

profit margin

A

Net income / Net sales

how much of sales revenue has turned into income

37
Q

return on total assets

A

Net income / Avg total assets

ability to use assets to make profit

38
Q

return on equity

A

Net income / Avg equity

ability to use invested capital to make income

Fin Acct (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions