Wgu c201 chapter 15 Study guides, Revision notes & Summaries

Financial Statements - ANSWER Transactions are accumulated and categorized Different kinds of financial statements - ANSWER Balance sheet, Income statement, statement of owners equity and statement fs of cash flows Income Statement - ANSWER Used by the manager to understand the revenue or sales. The expenses and profits of the organization for a period of time. Expenses - ANSWER What you have spent on non product related things Cost of Sales - ANSWER What you spend directly on your p...

Current assets / current liabilities - Current Ratio Current assets - minus inventory / current liabilities - Acid Test (Quick) Ratio Current assets $250 Inventory $20 Current Liabilities $100 250-20=230 230/100=2.2 $2.20 assets for every $1 in liabilities Acid Test (Quick) Ratio and Current Ratio - Liquidity Ratios Inventory Turnover, Receivables Turnover, and Total Asset Turnover - Activity Ratios Cost of goods sold / average inventory - Inventory Turnover. Equals the number of time...

WGU C201 Business Acumen Chapter 15 & 16: Accounting and Financial Statements – Ratios. Exam Review, Rated A+

WGU C201 Business Acumen Chapter 15 & 16: Accounting and Financial Statements – Ratios Current assets / current liabilities Current Ratio Current assets - minus inventory / current liabilities Acid Test (Quick) Ratio Current assets $250 Inventory $20 Current Liabilities $100 250-20=230 230/100=2.2 $2.20 assets for every $1 in liabilities Acid Test (Quick) Ratio and Current Ratio Liquidity Ratios Inventory Turnover, Receivables Turnover, and Total Asset Turnover Activity Ratios Cost of good...

Current assets / current liabilities Current Ratio Current assets - minus inventory / current liabilities Acid Test (Quick) Ratio Current assets $250 Inventory $20 Current Liabilities $100 250-20=230 230/100=2.2 $2.20 assets for every $1 in liabilities Acid Test (Quick) Ratio and Current Ratio Liquidity Ratios Inventory Turnover, Receivables Turnover, and Total Asset Turnover Activity Ratios Cost of goods sold / average inventory Inventory Turnover. Equals the number of times inventor...