ACC 333- Final Exam Guide - Comprehensive Notes for the exam ( 93 pages long!)

• School: Ryerson University
• Department: Accounting
• Course: ACC 333
• Professor: Douglas Kong

Document Summary

Key concepts: inter-statement ratios, cash flow statement, continuity formula, statement of retained earnings, taxation on small businesses, financing based on b. e. Lifecycle: equity + debt financing, )nvestor"s share formula (cid:523)diluted equity %(cid:524, internal sources of funds, amev formula, pecking order theory, formula for investing surplus cash, cost behaviours, direct vs. Indirect costs: responsibility centres, cvp analysis, operating budget, flexible vs. M14e - balance sheet iv business performance criteria: growth - is, profitability - is, cash flow - cfs, liquidity - bs, solvency - bs. Degree of liquidity: how quickly an item can be converted into cash without a material discount - assesses ability to access cash quickly in the short- term. Wc ratio (current ratio) = ca / cl. If current ratio goes down, liquidity is worsening (and vice versa) Quick ratio: excludes certain assets that take longer to convert to cash (i. e inventory) or those that don"t convert at all (cid:523)i. e prepaid expenses(cid:524)