Wall Street Prep Accounting-Exam with complete solutions Graded A+
4 views 0 purchase
Course
Wall Street
Institution
Wall Street
Wall Street Prep Accounting-Exam with complete solutions
Liquidity Ratios
measures of a firm's short-term ability to meet its current obligations
Profitability Ratios
measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability...
cash from operations (CFO)
uses net income as a starting point and converts accrual base net income into cash flow from
operations via a series of adjustments
cash from investing activities (CFI)
capital expenditures / asset sales and purchases
, cash from financing activities (CFF)
new borrowing / pay down of debt / new issuance of stock / share repurchases / issuance of
dividends
working capital
-CFO
-increase in current assets = cash outflow
-increase in current liabilities = cash inflow
asset write downs / impairments
-added back to CFS via CFO
Increases in A/R, inventory, prepaid expenses, other current assets should be _____________ net
income to get to CFO
subtracted
increases in A/P, accrued expenses, other current liabilities should be ____________ net income to
get to CFO
added
gains on sale of assets
subtracted from CFO
stock based compensation
added to CFO
Common CFI inflows/outflows
- capital expenditures
- purchases of intangible assets
+ asset sales
+ sales of debt/ equity security
- purchases of debt/equity security
Common CFS inflows/outflows
-Issuance / repayment of debt (cash inflow / outflow)
-Common stock issued / repurchased (cash inflow / outflow)
-Payment of common & preferred dividends (cash outflow)
Assumptions of Accounting
accounting entity, going concern, measurement, periodicity
principles of accounting
1. Historical Cost
2. Revenue Recognition
3. Matching Principle
4. Full Disclosure
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LectDan. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.59. You're not tied to anything after your purchase.
