One measure of a company;s ability to pay its short-term obligations. Current Assets/Current Liabilities
What is Current Ratio.
100
Assumes cost flow in the order incurred.
What is FIFO- First in First Out
100
The estimate of the asset's value at the end of its benefit period.
What is Salvage Value
100
Nonphysical assets that confer on the owners long term rights, privileges, or competitive advantages.
What is Intangible assets.
100
Simple interest formula.
What is Principle X Rate X Time
200
One way to assess the risk associated with a company's use of liabilities.
What is Debt Ratio.
200
When each inventory item can be identified with a specific purchase and invoice.
What is Specific Identification.
200
The length of time an asset is productively used in a company's operations.
What is Useful Life.
200
gives its owner the exclusive right to publish and sell a musical, literary, or artistic work during the life of the creator plus 70 years.
What is a copyright
200
An account set up as a contra asset for accounts receivable because at the time the company does not know which customers will not pay.
What is Allowance for Doubtful Accounts
300
A measure of a Company's operating results.
Net Income/Net Sales
What is Profit Margin.
300
Assumes cost flow at an average of the costs available.
What is Weighted Average.
300
All necessary reasonable expenditures to acquire an asset and to prepare its intended use.
What is Cost
300
Exclusive rights granted by the government to encourage the invention of new technology, mechanical devices, and production process.
What is a patent.
300
Employer payroll taxes.
What is FICA Medicare, FICA Social Security, FUTA and SUTA
400
Evaluation of management, analyzing and forecasting profits, and planning activities.
Net income/ Average total assets
What is Return on assets.
400
Assumes cost flow in the reverse order incurred.
What is LIFO- Last in First Out
400
Three depreciation methods.
What is Straight-Line, Units of production, and Declining-Balance (Double Declining)
400
An amount by which a company's value exceeds the value of its individual assets and liabilities. Paid more for something than what is is worth.
What is Goodwill.
400
A promise to pay a specified amount on a definite future date within one year or the company;s operating cycle, whichever is longer.
What is Short-term note payable.
500
A measurement of a merchandiser's ability to pay its current liabilities (aka liquidity).
Cash and cash equivalents + Short-term investments+ current receivables/ Current liabilities
What is Acid-test Ratio
500
Cost of inventory sold to customers during a period.
What is Cost of good sold.
500
The process of allocating the cost of a natural resource to the period when it is consumed.
What is Depletion.
500
Assets such as land, buildings, machinery and equipment.
What is Plant Assets.
500
Employee payroll taxes.
What is FICA Social Security, FICA Medicare and Employee Income Tax.