Accounting Equations

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How do you measure the Quality of Earnings Ratio?
What does this measure?
- Net Cash provided by Operating Expenses
- Net Income
How do you find the Profit Margin Ratio?
What does this measure?
- Net Income
- Net Sales
What measures the percentage of each dollar of sales that results in net income?

What does the profit margin ratio measure?
How do you determine the Gross Profit Rate?
What does this measure?
- Gross Profit
- Net Sales
What does the gross profit rate measure?

What uses a percentage to measure the gross profit?
How do you measure Free Cash Flow?

What does this measure?

Cash provided by operations - Capital expenditures - Cash dividends
How do you caculate debt to asset ratio?
What does this measure?
- Total Liabilities
- Total Assets
How do you measure debt to assets?

What measures the percentage of total financing provided by creditors instead of stockholders equity?
How do you find working capital?

What does this formula show?

Current Assets - Current Liablities
What is the Current Ratio formula?
What formula is this?
- Current Assets
- Current Liabilities
What does the current ratio masure?

What ratio is the more predictable measurement of liquidity?
What is the Earnings per Share formula?
What is this formula?
- Net Income - Preferred Stock Dividends
- Average Common Shares Outstanding
How do you calculate the days merchandise is in inventory?
What does this formula calculate?
- 365
- Inventory Ratio
What is the formula for turnover ratio?
What is this formula?
- COGS
- Average Inventory
What measures the number of times the inventory cycles through?

What does the inventory turnover ratio measure?

Author

vincedilley

8571

Card Set

Accounting Equations

Description

Accounting Equations 1

Updated

2010-03-01T04:44:35Z

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