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39 Cards in this Set
- Front
- Back
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dividend
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payment from corp. to shareholder |
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what do creditors do? |
lend money |
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commercial paper
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what is SOX and what does it do?
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it is a law to regulate auditors |
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average common shares |
The average number of shares of common stock that have not been sold or issued during a given time frame. This number fluctuates as often as stocks are purchased.
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Officers and others who manage the business.
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internal users
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earnings per share
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net income/ave common shares
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solvency
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the organization's ability to survive over a long period of time, pay interest when due and to repay balance of a debt due at its maturity
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current ratio formula |
total current assets divided by total current liabilities. |
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current ratio definition |
is a liquidity ratio measuring a company's ability to pay short-term and long-term obligations, also known as the working cash flow ratio. |
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working capital |
current ass-cur liab.
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liquiidity |
ability to pay short term obligations
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free cash flow |
cash provided by operations - capital expenditures- cash dividends |
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an item is ______ if it is likely to influence a investor or creditor |
material |
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faithful representation |
The requirement for consistency between claims made in financial statements and economic reports and the actual financial state of the company. |
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current assets |
expected to be converted to cash or used in the business within a relatively short period of time. |
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What is the order in which assets are generally listed on a classified balance sheet? |
Current; long-term investments; property, plant and equipment, intangibles |
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profitability ratios |
measure the income or operating success of a company for a given period of time are |
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a measure of profitability is the |
earnings per share |
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Most companies use a(n) _________ rather than a retained earnings statement. |
statement of stockholders’ equity |
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dividends appears on the ______ only |
retained earnings statement |
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declaring a cash dividend willl |
decrease retained earnings |
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working capital |
measures liquidity |
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Long-term creditors are usually most interested in evaluating |
liquidity and solvency |
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debt to assets ratio is a _____ ratio |
solvency |
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Free cash flow provides an indication of a company’s ability to |
generate cash to invest in new capital expenditures and to pay dividends. |
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Free cash flow is Net cash provided by operating activities |
less capital expenditures and cash dividends. |
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The quality of consistency enhances |
comparability |
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Accounting information is relevant to business decisions because it |
confirms prior expectations. |
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Characteristics associated with relevant accounting information are |
predictive value and confirmatory value. |
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An item is considered material if |
its size is likely to influence the decision of an investor or creditor. |
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Which of the following is a constraint in accounting |
Cost |
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indicates assets should be reported at the price received to sell an asset is the |
fair value principle |
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For accounting information to have relevance, it must be |
timely |
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Free cash flow is Net cash provided by operating activities |
less capital expenditures and cash dividends. |
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The periodicity assumption states that the economic life of a business can be divided into |
artificial time periods |
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Which accounting assumption requires that only those things that can be expressed in dollar values are included in the accounting records? |
monetary unit assumption |
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Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments? |
going concern assumption |
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u can do it |
