Intermediate Financial Accounting Chapter 5

4 cards

FA Chapter 5


 
  
Created Jan 15, 2012
by
mreeder16

 

 
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1
calculate: Current ratio
 
Current Assets / current liabilities
indicates ability to meet short term debt, the higher...
2
calculate: Debt to total Assets Ratio
 
(short + long term debt) / total assets
shows how much of the company's assets have been...
3
calculate: acid test ratio
 
(cash, marketable securities, receivables) / average current liabilities
The ratio of current...
4
calculate: Current Cash Debt Coverage
 
(net cash provided by operating activities) / average current liabilities


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