BUS-A 100 Study Guide - Midterm Guide: Form 10-Q, Audit, Financial Statement

• School: IU
• Department: Business
• Course: BUS-A 100
• Professor: Vivian Winston

Document Summary

Balance sheet equation - assets = liabilities + equity. Current ratio - companies ability to pay its debts. Debt-to-equity ratio - measure of a company"s liabilities compared to its equity: *measure of how the company has financed its assets. Return on equity - measures how efficient the company uses its equity: Earnings per share - (beginning number of shares outstanding + ending number of shares outstanding)/2. Inventory turnover ratio - measure of how fast a company moves its inventory. Interest payable - bb + [interest accrued] - [payments made] = eb. Notes payable - bb + [additional funds borrowed] - [payments made] = eb. Salaries payable - bb + [expense] - [payments made] =eb. Utilities payable - bb + [expense] - [paid] = eb. Accounts payable - bb + [purchases] - [paid] = eb. Accounts receivable - bb + [sales] - [cash collected] = eb. Inventory - bb + [purchases] - [cogs] = eb.