MGMT 30A Study Guide - Quiz Guide: Free Cash Flow, Current Liability, Financial Statement

• School: UC-Irvine
• Department: Management
• Course: MGMT 30A
• Professor: Patricia Wellmeyer

Document Summary

Profitability ratios: measures the operating success of a company for a given period of time. Liquidity: the ability of a company to pay obligations that are expected to become due within the next year or operating cycle. Intangible assets: assets that do not have physical substance. Working capital: difference between the amounts of current assets and current liabilities. Solvency ratio: measures the ability of the company to survive over a long period of time. Cost constraint: constraint that weights the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available. Liquidity ratios: measures of the short term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. Operating cycle: the average time required to purchase inventory, sell it on account, and then collect cash from customers, go from cash to cash.