ADMN 2021H Chapter Notes - Chapter 14: Comprehensive Income, Weighted Arithmetic Mean, Accounting

• School: Trent University
• Department: Business Administration
• Course: ADMN 2021H
• Professor: Richard

Document Summary

Discontinued operations: statement of financial position: assets and liabilities are reported separately, valued and reported at lower of carrying amount and fair value, less any anticipated costs of selling, reported as current or non-current assets or liabilities. Important to review non-financial information as well: mission, strategy, goals and objectives, management discussion and analysis. Comparative analysis: three types of comparisons, intracompany basis comparisons within a company, intercompany basis comparisons between one or more competitor companies, industry averages. Working capital: measures short-term debt paying ability, working capital = current assets current liabilities, higher is better, current ratio is a better indicator. Current ratio: measures short-term debt paying ability, current ratio = current assets/current liabilities, higher is normally better, cautious about influences of slow moving inventory and receivables on this ratio. Cash current debt coverage: measures short-term debt-paying ability, cash current debt coverage = net cash provided (used) by operating activities/average current liabilities, higher is better.