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by slytle

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Front Back
Order of assets on a balance sheet
Current Assets

Non-Current Assts
- Long Term Investments
- Intangible Assets
- Other Assets
Parts of a Comprehensive Income Statement:
Net Income
Translation Gain
Pension Loss
Loss on Cash Flow Hedge
Loss on Available-for-Sale Investments
Define Translation Gain
Gain/Loss because of exchange rates
Define Pension Loss
If the defined pension plan increases in cost due to a change in life expectancy (plan)
How does something qualify to fall under Discontinued Operations?
It has to be sperable and identifiable cash flows
Why should we include estimates on the financial statements?
When faced with uncertainty all decision makers make estimates.  Since we are making financial statements for external we should include the accruals to provide them with the most current estimate of the status of the corporation.
When is an event considered extraordinary?
Unusual and infrequent.

Some examples: destruction of property by natural disaster
Two typical categories of restructuring costs
Employee Severence
Asset Write Off
Account Receivabe Turnover
Sales Revenue/Average Accts Receivable
Define Reveune Growth
(End Revenue - Start Revenue)/(Start Revenue)
Types of ways to recognize revenue
Right of return lapsed
percentage of complete
Title transfered to customer & payment received
FIFO Cost of Good Sold = in terms of LIFO and LIFO reserve
LIFO cost of Goods Sold - Change in the LIFO Reserve
Unrealized Holding Gains
A gain resulting in holding inventory as prices rise.  Essencially buy low sell high.
Gross Profit Margin
(Sales Revenue - COGS) / Sales Revenue
Define Inventory Turnover Ratio
COGS/Average Inventory
x of y cards