Solvency Ratios - $400 Compares cash flows from operations to cash paid for property and equipment. What is the Capital Acquisitions ratio? Back to Board
Solvency Ratios - $500 Is calculated using the formula Total Liabilities / Total Assets. What is the Debt to Assets ratio? Back to Board
Other Terms - $100 The assumption that indicates that the long life of a company can be reported in shorter time periods. What is the Time Period Assumption? Back to Board
Other Terms - $200 Recognizes that companies in certain industries must follow accounting rules peculiar to that industry. What is the Industry Practices Constraint? Back to Board
Other Terms - $300 States that businesses are assumed to continue to operate into the foreseeable future. What is the Going-Concern (Continuity) Assumption? Back to Board
Other Terms - $400 States that accounting rules should be followed to the extent that the benefits outweigh the costs of doing so. What is the Cost-Benefit Constraint? Back to Board
Other Terms - $500 The principle that financial reports should present all information that is needed to properly interpret the results of the company’s business activities. What is the “full disclosure principle”? Back to Board
Review Potpourri - $100 Back to Board The section of the SCF under which an increase in long-term debt is reported. What is Cash Flows from Financing?
Review Potpourri - $200 Back to Board The inventory costing method that assigns the costs of the first goods purchased to the first goods sold. What is FIFO (first-in, first-out)?
Review Potpourri - $300 Back to Board The Cost of Goods Sold equation. What is Beginning Inventory + Purchases – Ending Inventory = COGS?
Review Potpourri - $400 Back to Board The method of estimating bad debt expense that is based on the age of customer account balances. What is the Aging method?
Review Potpourri - $500 Back to Board The Fundamental Accounting Equation. What is Assets = Liabilities + Shareholders’ Equity?
Daily Double Specify Your Wager!
Solvency Ratios --- Indicates how many times interest expense is covered by income (before the costs of financing and taxes). Back to Board What is the Times Interest Earned ratio?