113a Test 1 - Normal Balance Debit Normal Balance Credit...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Normal Balance: Debit Normal Balance: Credit Closing Entries: CF from Ops CF from Inversting Asset ^ v Liabilities v ^ Sales Rev 10k +NI +Sale of LT Assets Expense ^ v S/E v ^ I/S 10k +Dep/Amt w/Dep -Buy LT Assets Revenue v ^ I/S 7k +/- Loss/Gains Exp 7k +/- Dec/Inc in CA CF from Financing I/S 3k +/- Inc/Dec in L +amt borrow loans R/E 3k -amt repaid loans +proceeds from stock sales -amt paid to repurchase -divid paid Ratios: Current Cash Debt Coverage: Net Cash by operating activies/Avg CL >> 1:1 is good, can company pay of CL from internal CF? Cash Debt Coverage Ratio: Net cash provided by operating act/Avg. TL >>companys ability to repay L from cash by operating Free Cash Flow: +CF from operation –Cap Expenditures –Divides = FCF Objectives of Financial Reporting : Provide financial info about reporting entity that is useful to: 1. Present and potential equity investors   2. Lenders   3. Other Creditors   -Should influence the decision in their capacity as capital providers Why do we have standards?: Various users need financial information (like Financial Statements) so to keep the information consistent and easily comparable with other companies, standards were created (GAAP). Who makes the standards? : Financial Accounting Standards Board (FASB) How does FASB work? What are the predecessors to the FASB? Are their rules still relevant?: -3 parts to FASB: 1.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern