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Longitduinal 4- Exam 1 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution CA$11.51   Add to cart

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Longitduinal 4- Exam 1 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

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Longitduinal 4- Exam 1 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

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  • June 19, 2024
  • 22
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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By: EXAMQA • 5 months ago

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Longitudinal 4- Exam 1
Statement of financial position at specific point in time
Balance sheet


what is on a balance sheet?
- assets
- liabiltiies
- owner's equity
assets listed in order of
decreasing liquidity


current assets
easily converted to cash or consumed in 1 year


current cash
Cash
Accounts receivable
Inventory
Prepaid expenses (other assets)


fixed asset
building land, etc
cannot be sold


liabiltiies listed in increasing term of
payoff time


current liabilities and accrued
Must be paid in one year
Accounts payable

,long term liabilities
Due in > 1 year
Notes loan mortage


Owner's equity
net worth or cpaital


income statement
across a time period


portion of income statment
- TS
- COGS
- gross profit
- operating expenses
- gross profit
- net profit


COGS
Value of beginning inventory + purchases - value of end inventory


gross profit =
Total sales - COGS


net profit
Gross profit - operating expenses


Direct cost
Attributable to service

, Indirect cost
Would occur even without service


Fixed
Sum of cost before you can produce first unit


Variable
Based on how much units/sessions


assets=
liability + owner equity(net worth)


Financial ratio analysis way of determining
-How well the assets of a business are being managed and controlled
-Whether a return on invested funds is satisfactory


Examine differences in financial status between periods to identify
seasonal variations
seasonality


Establish a basis for credit and negotiate for best financing terms
Borrowing


four classifications financial ratio analysis
- profitability
- efficiencey
- liquidity
- solvency

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