Accounting Review for Test #2

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Author:
jrad95
ID:
288139
Filename:
Accounting Review for Test #2
Updated:
2014-11-04 18:01:14
Tags:
Accounting
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Description:
Accounting Equations for the UAlbany accounting test
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  1. Sarbanes-Oxley Act
    • Try to minimize opportunity for accounting fraud through
    • Stiffer fines
    • prison terms
    • code of ethics etc...
  2. Debt to assets ratio
    • Liabilities/assets
    • measures how much of assets are funded by debt¬†
    • higher number=greater risk
  3. Asset Turnover Ratio
    • Total revenue/ Avg total assets
    • How well you use your assets to create revenue
    • higher number=better shape
  4. Net profit margin ratio
    • Net profit/Total revenues
    • how much profit is earned from each dollar of revenue¬†
    • higher number= better control of expenses
  5. Net sales Equation
    Sales revenue-Sales returns and allowances-sales discount
  6. Gross profit equation
    Net sales-Cost of goods sold
  7. Gross profit percentage
    (Gross profit/net sales)(100)
  8. Inventory turnover
    Cost of goods sold/average inventory
  9. days to sell
    365/inventory turnover

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