Ratios
This Ratio is a percentage and the higher it is, the more risky a company may be perceived
What is Debt Ratio?
There is an increase to cash.
What is a debit?
"Language of Business"
What is Accounting?
You have equity as you bought a house for $400,000 and took out a loan for $367,000.
What is $33,000
Mr. Gessner's favorite restaurant.
What is Wendy's?
For this ratio, higher is not better; however, it is considered safer.
What is Current Ratio?
Sales or a service performed increases equity, also called "revenue".
What is a credit?
The type of accounting we have been learning.
What is Financial Accounting?
These are things that we value.
What is an Asset?
The current ratio has to be at least this to be considered good.
What is 1?
The formula for current ratio.
What is Total Current Assets/Total Current Liabilities?
Company gets a loan.
What is credit?
The Accounting Equation.
What is Assets = Liabilities + Equity?
These are things that we owe.
What are Liabilities?
When your debt and equity ratio equal this number, then that means it was done correctly.
What is 100%?
The formula for equity ratio.
What is Total Equity/Total Assets?
Company purchases a service on account.
What is a credit?
Specific time frame that is stated for accounting statments.
What is Accounting Period?
We can check that our work is correct on this by seeing if Total Assets equals Total Liabilities + Total Equities,
What is a Balance Sheet?
After the T-Accounts, the total debits and total credits should equal on this.
What is a Trial Balance?
The formula for debt ratio.
What is Total Liabilities/Total Assets?
A decrease to accounts payable.
What is debit?
Organizing financial summaries help others to interpret and analyze so that they can do this.
What is decision-making?
This shows what was saved by the business going into the next year.
What is Statement of Retained Earnings?
Telephone, Internet, Gas, and Electric.
What are Utilities?