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12 Cards in this Set
- Front
- Back
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balance sheet
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a report of the balances in the permanent accounts on a specific date
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report form
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a balance sheet format that lists classifications one under another
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statement of cash flows
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a financial statement that summarizes the cash receipts and cash payments resulting from business activities during a period
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ratio analysis
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the process of evaluating the relationship between various amounts in the financial statement
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profitability ratio
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a ratio used to evaluate the earnings performance of a business during the accounting period
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return on sales
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a ratio that examines the portion of each sales dollar that represents profit; calculated by dividing net income by sales
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current assets
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the assets that are either used up or converted to cash during the normal operating cycle of the business
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current liabilities
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the debts of the business that must be paid within the next accounting period
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working capitol
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the amount by which current assets exceed current liabilities
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liquidity ratio
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the measure of a buisiness's ability to pay its current debts as they become due and to provide for an unexpected need for cash
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current ratio
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the relationship between current assets and current liabilities; calculated by dividing current assets by current liabilities
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quick ratio
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a measure of the relationship between short term assets and current liabilities; calculated by dividing the total cash and recievables by the current liabilities
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