10/12/24, 12:20 PM ACC 201 exam 1 MSU Flashcards | Quizlet
ACC 201 exam 1 MSU
Jeremiah
Terms in this set (34)
Basic accounting equation assets = liabilities + SE
Income Statement Net Income = revenues - expenses (+/- gains & losses)
how to find retained earnings Beginning R/E + Net Income - Dividends = Ending R/E
what does the SEC do? set and enforce accounting standards
what does the FASB do? delegated standard setter
normal balance for assets debit (left)
normal balance for liabilities credit (right)
normal balance for SE credit (right)
normal balance for revenue (increasing) credit (right)
normal balance for expenses (increasing) debit (left)
market to book ratio (# of shares * share price)/SE
SE/# of shares outstanding
price per share/book value per share
reveals how much investors are willing to pay for each $1 of book value
risk of market to book ratio higher the risk, lower the ratio
impacts: revenues, expenses, gains, losses, and RE
closing process (confusing js)
temporary accounts are closed to retained earnings
liquidity ability to meet current maturing debts or short term obligations
working capital current assets - current liabilities
current ratio current assets/current liabilities
solvency measures ability to meet long term obligations
debt-to-assets total liabilities/total assets
debt-to-equity total liabilities/total SE
debt covenants promises a firm makes to its creditors in a formal contract
ACC 201 exam 1 MSU
https://quizlet.com/270826234/acc-201-exam-1-msu-flash-cards/ 1/2
ACC 201 exam 1 MSU
Jeremiah
Terms in this set (34)
Basic accounting equation assets = liabilities + SE
Income Statement Net Income = revenues - expenses (+/- gains & losses)
how to find retained earnings Beginning R/E + Net Income - Dividends = Ending R/E
what does the SEC do? set and enforce accounting standards
what does the FASB do? delegated standard setter
normal balance for assets debit (left)
normal balance for liabilities credit (right)
normal balance for SE credit (right)
normal balance for revenue (increasing) credit (right)
normal balance for expenses (increasing) debit (left)
market to book ratio (# of shares * share price)/SE
SE/# of shares outstanding
price per share/book value per share
reveals how much investors are willing to pay for each $1 of book value
risk of market to book ratio higher the risk, lower the ratio
impacts: revenues, expenses, gains, losses, and RE
closing process (confusing js)
temporary accounts are closed to retained earnings
liquidity ability to meet current maturing debts or short term obligations
working capital current assets - current liabilities
current ratio current assets/current liabilities
solvency measures ability to meet long term obligations
debt-to-assets total liabilities/total assets
debt-to-equity total liabilities/total SE
debt covenants promises a firm makes to its creditors in a formal contract
ACC 201 exam 1 MSU
https://quizlet.com/270826234/acc-201-exam-1-msu-flash-cards/ 1/2
