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    moemyintbo's Avatar
    moemyintbo Posts: 1, Reputation: 1
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    #1

    Dec 16, 2010, 11:29 PM
    accounting test please help
    any answers would be greatly appreciated.
    1)How do stock splits effect stockholder's equity? Market capitalization, and total par value?

    2)Differences between cumulative preferred stock and non-cumulative preferred stock? What happened with dividend in arrears?

    3)Where is treasure stock located?(what financial statement and what part of financial statement? (show journal entry for treasury stock)

    4)What are the effects of treasury stock on total assets, total stockholder's equity, shares issued and shares outstanding?

    5) Where are extraordinary items found?

    6)What prior period adjustment is ? Where is it located?

    7) how to calculate earnings per share?

    8)what type of an account is an allowance of doubtful account?

    9)Mark to market adjustment for available for sales of securities? (Different between mark to market adjustment in sales of securities and trading securities which we did not discuss in class) work on journal entries. (what financial statements do they effect)

    10) Difference between quick assets and current assets?

    11) What do we use the debt ratio to measure?

    12) What is a desirable current ration?

    13) Differences between product cost and period cost?

    14) What type of inventories are included in material inventory and work in process inventory, and the
    finished goods inventory?

    15) Differences between product cost and period cost?

    16) What type of inventories are included in material inventory and work in process inventory, and the finished goods inventory?

    17) what types of reports are generated in managerial accounting purposes?

    18) What is the purpose of a job costing sheet? (in book)

    19) How to calculate the break even in units and break even in sales?

    20) what is process costing?
    pal_g3's Avatar
    pal_g3 Posts: 15, Reputation: 1
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    #2

    Dec 17, 2010, 01:45 PM
    EPS= EAT/No. of shares
    The quick (or acid-test) ratio is a more stringent measure of liquidity. Only liquid assets are taken into account. Inventory and other assets are excluded, as they may be difficult to dispose of. Most of the time companies have bulk of inventories in their warehouse; in this case current asset ratio does not generate the proper results. Quick ratio is used to cross check, more difference in current and quick ratio indicates that company sales is slow and inventory level is too high. Higher the value of quick ratio, better the company liquidity position. One thing is most important to note that quick ratio is always lower than current ratio.
    It is used to determine if a company can pays its short term obligations with its current assets. The current ratio is another test of a company's financial strength. It calculates how many dollars in assets are likely to be converted to cash within one year in order to pay debts that come due during the same year. In general, a ratio of 2 to 1 is usually considered good. Too small a ratio indicates that there is some potential difficulty in covering obligations. A high ratio may indicate that the firm has too many assets tied up in current assets and is not making efficient use to them.
    the desirable current ration is 2:1 but it depends according to different companies.
    B.E (sales)= Fixed cost/ Contribution margin ratio
    B.E (units)= Fixed cost/ Contribution Margin/unit
    Allowance for doubtful debts is an account for making provision for the projected bad debts. It is used in the allowance method. And net off when sales are made.
    Product cost is the cost used to bring in the goods at the point of sale. It might include purchases+transportation charges. Whereas period cost is the cost of the whole period such as MOH.

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