FACC 300 Study Guide - Final Guide: Asset, Asset Turnover, Inventory Turnover

• School: McGill University
• Department: Faculty Course
• Course: FACC 300
• Professor: Raad Jassim

Document Summary

(dq/q) / (dp/p) or - (dq/dp) / (q/p) identical except without negative sign identical except without negative sign. The account that gives value (i. e. decreases) is credited. The account that receives value (i. e. increases) is debited. Liquid current assets / current liabilities (above 1. 0) Times-interest-earned earnings before interest on ltd and taxes / interest on ltd ratio. Return on total assets net income / average total assets (average of 5%) Note: the values given in parenthesis in the accounting measures listed above are whole-industry guide- lines. Values particular to one industry may vary outside of the ranges given. These guidelines values will not be included in the formula sheets supplied with the class tests and final examination. Cost of goods sold / average inventory of finished products (av. of 5-10) Average accounts receivable / average daily credit sales (av. of 60 days) Net sales / average net fixed assets (average of 5 to 6)