Financial Accounting and Reporting All answers are completely accurate, achieving a high distinction.

Information the income statement provides - Answer R - revenues E - expenses G - gains L - losses Items not on the income statement - Answer P - pension funded status change U - unrealized gains/loss on available for sale debt securities and hedges F - foreign translation adjustment I - instrument-specific credit risk The Five Step Approach to Revenue Recognition - Answer I - identify the contract S - separate performance obligations in the contract, identify them T - transaction price, determine it A - allocate the transaction price to the separate performance obligations R - recognize revenue when or as the entity satisfies each performance obligation Fair Value Measurement Framework - Answer M - market approach (uses prices and other relevant information) 2 I - income approach (converts future amounts, including cash flows or earnings) (a or l) C - cost approach (uses current replacement cost to measure the fv of assets) Gross Profit Margin (Profitability) - Answer Sales (net) - COGS / Sales (net) Profit Margin (Profitability) - Answer Net Income / Sales (net) Return on Sales (Profitability) - Answer Income Before Interest Income, Interest Expense, and Taxes / Sales (net) Return on Assets (Profitability) - Answer Net Income / Average Total Assets DuPont Return on Assets (Profitability) - Answer - Profit Margin x Asset Turnover - (Net Income / Sales (net) x (Sales (net) / Average Total Assets) Return on Equity (Profitability) - Answer Net Income / Average Total Equity Operating Cash Flow Ratio (Profitability) - Answer Cash Flow From Operations / Current Liabilities Current Ratio (Liquidity) - Answer Current Assets / Current Liabilities Quick Ratio (Liquidity) - Answer (Cash and cash equivalents + Short-term marketable securities + Receivables (net)) / Current liabilities Cash Ratio (Liquidity) - Answer (Cash + Marketable securities) / Current liabilities AR Turnover (Liquidity) - Answer Sales (net) / Average AR (net) Days sales in AR (Liquidity) - Answer Ending AR (net) / (Sales (net) / 365) Inventory Turnover (Liquidity) - Answer COGS / Average inventory Days in Inventory (Liquidity) - Answer Ending inventory / (COGS / 365) AP Turnover (Liquidity) - Answer COGS / Average AP 3 Days of Payables Outstanding (Liquidity) - Answer Ending AP / (COGS / 365) Cash Conversion Cycle (Liquidity) - Answer Days sales in AR + Days in inventory - Days of payables outstanding Debt-to-Equity (Solvency) - Answer Total liabilities / total equity Total debt ratio (Solvency) - Answer Total liabilities / total assets Equity Multiplier (Solvency) - Answer Total assets / total equity Times Interest Earned (Solvency) - Answer Income before interest expense and taxes / interest expense Earnings Per Share (Performance) - Answer Income available to common shareholders / WACSO Price-to-Earnings Ratio (Performance) - Answer Price per share / basic earnings per share Dividend Payout (Performance) - Answer Cash dividends / net income Asset Turnover (Performance) - Answer Sales (net) / average total assets Additional Shares Outstanding - Answer .....