Card Set Information

2013-09-09 00:18:53

terms for test
Show Answers:

  1. earning per share =
    net income - preferred stock dividends

    Average common shares outstanding
  2. Current ratio=
    • Current assets
    • current liabilities
  3. Debt to total Assets Ratio=
    Total liabilities

    total assets
  4. working capital =
    Current assets-current liabilities
  5. Free Cash Flow=
    Cash provided by operations- capital expenditures- cash dividends
  6. Assets=
    Liabilities+ stockholders equity
  7. Generally accepted accounting rules
    guidance from a set of rules and practices that have authoritative support
  8. Securities and Exchange Commision (SEC)
    GOV. oversees U.S. fincancial market and accounting standard setting bodies
  9. Fincancial Acounting Standards Board (FASB)
    primary accounting standard-setting body
  10. Accounting Standards Board (IASB)
    issues standards called International Financial Reporting Standards (IFRS)
  11. Public Company Accounting Oversight Board (PCAOB)
    Sarbanes-Oxley Act, recent act
  12. Comparability
    result when different companies use the same accounting principles
  13. Consistency
    mans that a company uses the same acconting principle and methods from year to year
  14. verifiable
    if we are able to prove that it is free from error
  15. understandablity
    presentd in a clear and concise fashion
  16. cost principle
    dictats that companies record assets at their cost
  17. fair value principle
    indicates that assets and liabilities should be reported at fair value.
  18. Full disclosure principle
    requires that ccompanies disclose all circumstances and event that would make a difference to fincanial statement users
  19. Sarbanes-Oxley Act (SOX)
    REDUCE unethical corporate behavar and decrease the likelihood of futre crporatee scandals