The Accounting Equation
What is the accounting equation?
A=L+OE
Which two P/E ratios did we discuss in class? Trailing and ____
Forward
The systematic process of recording and reporting the financial position of a person or an organization. It is often called the language of business
Accounting
What is my favorite food?
(Burgers, Pasta, Fried Chicken, Pizza)
Fried Chicken
When the market is going up it is called a _____ market
Bull
If assets are 1000 and liabilities are 800, how much is owner's equity?
200
This ratio measures current assets/current liabilities
Quick Ratio
This person ensures all financial statements are reported according to GAAP
Auditor
The set of accounting rules used by accountants to prepare reports
GAAP
Investing your money into many different types of accounts to spread out risk (Differentiation, Divisible, Diversification or Decisions)
Diversification
You are looking at the balance sheet: Total Liabilities are $400,000 and Total Equity is $20,000, but someone spilled coffee on total assets!!! What should that number be?
$420,000
The P/S ratio stands for
Price to Sales
Where can I find book value?
Balance Sheet, Owner's Equity
This statement is a snapshot of a company
Balance Sheet
What is the name of Warren Buffet's company?
Berkshire Hathaway
If I increase an asset I am _____ it
Debit
With ROA and ROE ____ is better (lower or higher)
Higher
This document discloses information about a company's earnings, assets and liabilities. (Prospectus/Annual Report, Brochure, Email, Perspective)
Prospectus/Annual Report
This is the process of decreasing an asset's value over time
Depreciation
This is the range of the last year of stock prices
52 week high and low
If I am increasing a revenue I am _____ it
crediting
Current Stock Price/Earnings
P/E ratio
Current liabilities and assets are for under ___ ____
1 year
What is my cat's name?
Apollo
This is paid out to stockholders as a portion of the company's profits
Dividend