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16 Cards in this Set
- Front
- Back
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Business Segment |
Part of a company that can be separately identified by the products or services that it provides or by the geographic markets that it serves; also called segment |
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Common-Size Financial Statement |
Statement that expresses each amount as a percent of a base amount. In the balance sheet, total assets is usually the base and is expressed as 100%. In the income statement, net sales is usually the base. |
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Comparative Financial Statement |
Statement with data for two or more successive periods placed in side by side columns, often with changes shown in dollar amounts and percents. |
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Efficiency |
Company's productivity in using its assets; usually measured relative to how much revenue a certain level of assets generates. |
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Equity Ratio |
Portion of total assets provided by equity, computed as total equity divided by total assets |
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Financial Reporting |
Process of communicating information relevant to investors, creditors, and others in making investment, credit, and business decisions |
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Financial Statement Analysis |
Application of analytical tools to financial statements and related data for making business decisions. |
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General-purpose financial statements |
Statements published periodically for use by a variety of interested parties; include the income statement, balance sheet, statement of owners equity (or statement of retained earnings for a corporation) statement of cash flows, and notes to these statements |
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Horizontal Analysis |
Comparison of a company's financial condition and performance across time |
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Liquidity |
Availability of resources to meet short-term cash requirements |
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Market Prospects |
Expectations ( both good and bad ) about a company's future performance as assessed by users and other interested parties |
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Profitability |
Company's ability to generate an adequate return on invested capital |
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Ratio Analysis |
Determination of key relations between financial statement items as reflected in numerical measures |
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Solvency |
Company's long-run financial viability and its ability to cover long-term obligations |
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Veritcal Analysis |
Evaluation of each financial statement item or group of items in terms of a specific base amount |
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Working Capital |
Current assets minus current liabilities at a point in time. |
