Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
|
Balance Sheet
|
reports orgs financial condition at a certain date; measure of overall finanacial health
|
|
|
Income Statement
|
shows profit or loss for a particular period of time
|
|
|
Gross margin
|
revenue - cost of goods (or services) sold
|
|
|
Net income before taxes
|
gross margin - operating expenses
|
|
|
Statement of cash flows
|
tracks all cash reciepts and disbursements duringa specified period
|
|
|
Inventory turnover ratio
|
cost of goods sold/average inventory; low = poor purchasing, high = lack of inventory
|
|
|
Return on equity
|
net income after taxes/owner's equity; profitability
|
|
|
Debt of owners' equity
|
total liabilities/owners' equity
|
|
|
Current ratio
|
current assets/current liabilities
|
|
|
Acid-Test ratio
|
(cash + marketable securities + recievables)/current liabilities
|
|
|
fundamental accounting equation
|
assets = liabilities + owners' equity
|
