WSP Crash Course In Accounting
Study online at https://quizlet.com/_52nrig
1. Working Capital: Current Assets - Current Liabilities
2. Current Assets: Can be converted to cash withing a year;
includes: cash, marketable securities, accounts receivable,
inventory, prepaid expenses
3. Current Liabilities: Due within a year; includes: accounts payable,
accrued expenses, deferred revenue, short-term debt, and current
portion of long-term debt
4. Current Ratio: Current Assets / Current Liabilities; a financial ratio
that mea- sures working capital designed to provide a measure of a
company's liquidity
5. One: Generally speaking, a current ratio greater than implies
a company is more liquid because it has liquid assets that can
presumably be converted into cash and will more than cover the
upcoming short-term liabilities
6. Quick Ratio: (Cash, Marketable Securities, and Accounts Receivable) /
Current Liabilities; a financial ratio that isolates only the most liquid
assets (cash and receivables) to gauge liquidity
7. Liquidity: The Balance Sheet organizes assets and liabilities in order
of
8. Operating Cycle: Inventory Days + Days Sales Outstanding; the time
it takes, from start to finish, to buy/produce inventory, sell it, and
collect cash for it
9.Net Operating (Cash Conversion) Cycle: Operating Cycle - Payables
Payment Period (PPP); an iteration of the Operating Cycle that takes
into account credit purchases
10.Receivables Turnover: Revenue During Period / Average Accounts
Receiv- able
11.Days Sales Outstanding (DSO): Days in Period / Receivables Turnover
12.Inventory Turnover: COGS / Average inventory
13.Inventory Days: Days in Period / Inventory Turnover
14.Accounts Payable Turnover: COGS / Average Accounts Payable
15.Payables Payment Period (PPP): Days in Period / Average Payable
1
, WSP Crash Course In Accounting
Study online at https://quizlet.com/_52nrig
Turnover
16.Form 10-K: At the end of each year, publicly-traded companies must
file a
report which includes a thorough overview of their
businesses and finances as well as their financial statements
17.Form 10-Q: At the end of the first three quarters of each fiscal
year, pub- licly-traded companies must file a with the SEC
which includes financial statements and non-financial data
2
Study online at https://quizlet.com/_52nrig
1. Working Capital: Current Assets - Current Liabilities
2. Current Assets: Can be converted to cash withing a year;
includes: cash, marketable securities, accounts receivable,
inventory, prepaid expenses
3. Current Liabilities: Due within a year; includes: accounts payable,
accrued expenses, deferred revenue, short-term debt, and current
portion of long-term debt
4. Current Ratio: Current Assets / Current Liabilities; a financial ratio
that mea- sures working capital designed to provide a measure of a
company's liquidity
5. One: Generally speaking, a current ratio greater than implies
a company is more liquid because it has liquid assets that can
presumably be converted into cash and will more than cover the
upcoming short-term liabilities
6. Quick Ratio: (Cash, Marketable Securities, and Accounts Receivable) /
Current Liabilities; a financial ratio that isolates only the most liquid
assets (cash and receivables) to gauge liquidity
7. Liquidity: The Balance Sheet organizes assets and liabilities in order
of
8. Operating Cycle: Inventory Days + Days Sales Outstanding; the time
it takes, from start to finish, to buy/produce inventory, sell it, and
collect cash for it
9.Net Operating (Cash Conversion) Cycle: Operating Cycle - Payables
Payment Period (PPP); an iteration of the Operating Cycle that takes
into account credit purchases
10.Receivables Turnover: Revenue During Period / Average Accounts
Receiv- able
11.Days Sales Outstanding (DSO): Days in Period / Receivables Turnover
12.Inventory Turnover: COGS / Average inventory
13.Inventory Days: Days in Period / Inventory Turnover
14.Accounts Payable Turnover: COGS / Average Accounts Payable
15.Payables Payment Period (PPP): Days in Period / Average Payable
1
, WSP Crash Course In Accounting
Study online at https://quizlet.com/_52nrig
Turnover
16.Form 10-K: At the end of each year, publicly-traded companies must
file a
report which includes a thorough overview of their
businesses and finances as well as their financial statements
17.Form 10-Q: At the end of the first three quarters of each fiscal
year, pub- licly-traded companies must file a with the SEC
which includes financial statements and non-financial data
2
