| Current Assets/Liabilities & Ratios & Cash Flow | Fixed Assets (PP&E)/Depreciation | Stockholders Equity | LT Liabilities - Bonds & Leases | Potpouri |
|---|---|---|---|---|
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In a period of rising prices, which inventory cost flow method will produce the highest amount of Ending Inventory on the Balance Sheet?
FIFO
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All expenses to make available for use - real estate/broker, surveying & legal fees (land) - architects, etc. (building)
What is included in the capitalization of the cost of Land (and Building)?
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Contra Equity (Debit to Stockholders Equity)
How is Treasury Stock Account for?
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PAR (Stated or Face ) Value - generally $1,000
A Bonds stated coupon (relative %) is based on its ...(aka A bonds absolute payment is relative to its....)
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Capitalization
What is the process of placing an asset on the books and systematically accruing its expense over the period incurred?
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What is LCM
Lower of Cost or Market of Inventory - via conservatism, inventory sold below cost, should be reduced to its current Market (replacement) value
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Impairment
When an infinite lived intangible is written down to market value, it is called
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Retained Earnings
Accumulated "Net Income" is reported on the Balance Sheet as?
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Premium/Discount
When a bonds coupon > market interest rates (YTM-I/YR) it trades at a ....When a bonds coupon < market interest rates (YTM-I/YR) it trades at a?
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Retained Earnings
Net Income reinvested, flows to the balance sheet as?
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What is the Current Ratio
Current Assets/Current Liabilities =
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Investing
On the Statement of Cash Flows, Buying/Selling P, P & E is referred to as_____________ activities?
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Any preferred dividends missed ("in arrears") must be made, before common stockholder dividends are declared.
When preferred stock is cumulative, what must be done BEFORE common stockholders are paid?
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When Interest Rates Decline
At the Call Premium
When do Callable Bonds get called
And at What Price? |
Straight Bond's value generally greater, especially at low interest rates
What affect does the call feature of a bond have on its price (relative to a noncallable or straight bond)
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What is Return on Equity?
Net Income/Avg. Stockholder's Equity
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Amortization
What term "matches" Intangible costs (consumed) to the period incurred
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Interest Expense on Debt is Tax Deductible while Common Stock Dividends are not.
What is a primary advantage of issuing debt (Long Term Bonds Payable) vs. Equity (Common Stock)?
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Par Value
Assuming no Default Risk or Call Premium, ALL bonds should approach/mature at?
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Annuities
Equal Periodic Payments (ie. Bond Payments) are referred to as?
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Assets (inversely) - Liabilities (directly)
How are changes in Current Assets & Liabilities Balances Treated on the Operating Section of the Statement of Cash Flows?
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Net Book Value
What is another term for the Carrying Value of a Fixed Asset on the Balance Sheet?
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PV = FV/(1+r)t
What is the formulas for PV of Future Cash Flows (useful in Bond Valuation & Lease Classification as Operating or Financing)?
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Bonds - recorded at Amortized Cost
Marketable Securities that are classified as Held to Maturity are reported at:
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Convertible Bonds, Employee Stock Options
Give an example of something that could potentially reduce Earnings Per Share?
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