会计学原理英文课件9.pptVIP

* * * * Debt-to-equity ratio (负债与所有者权利比率) Debt-to-Equity = Total Liabilities Owners’ Equity In general, a high ratio suggest that a company relies heavily on funds provided by creditors. This ratio measures the financial risk of companies. END of Ch. 10 SKIP Pages 523-537 Summary Reading: Ch 9 10 Current liabilities, noncurrent liabilities, their difference and the accounts listed under them Advantage disadvantage of bond Working capital and Current ratio A/P turnover ratio Debt-to-equity ratio HW 9 10 * * * * * * * * * * * * * * * * * * * * * * * * * * * 6 * 5 * 9 9-* Copyright ? 2007 by The McGraw-Hill Companies, Inc. All rights reserved. ?? Chapter 9 10 Reporting and Interpreting Liabilities Understanding the Business The acquisition of assets is financed from two sources: Debt - funds from creditors Equity - funds from owners Overview of Liability The mix of debt and equity for a company is called the capital structure: Debt - funds from creditors Equity - funds from owners Understanding the Business Debt is considered riskier than equity. Interest is a legal obligation. Creditors can force bankruptcy. Liabilities Defined and Classified Defined as probable debts or obligations of the entity that result from past transactions, which will be paid with assets or services. Maturity = 1 year or less Maturity 1 year Current Liabilities Noncurrent Liabilities Liabilities Defined and Classified Liabilities are measured at their current cash equivalent (the amount a creditor would accept to cancel the debt) at the time incurred. Current Liabilities Current Liabilities Payment Accrued Liabilities Accrued expense is recorded Consumption of financial resources Financial resources are consumed before the actual payment. Current Liabilities Earned revenue is recorded. As the earnings process is completed . . . Deferred Revenues Deferred revenue is recorded. Cash is received in advance. Cash is collected from the customer before the revenue is actually earned. Current