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;
10 Cards in this Set
- Front
- Back
|
What is liquidity? |
assets easily converted to cash |
|
|
What is horizontal analysis? |
calculation of dollar changes or percentage changes in the statement items or totals |
|
|
What is vertical analysis? |
study of a single financial statement in which each item is expressed as a percentage of a significant total |
|
|
What are trend percentages? |
comparisons are made to a selected base year or period |
|
|
Working capital formula |
current assets - current liabilities |
|
|
What does the working capital show? |
amount of current assets left over after paying liabilities |
|
|
current ratio formula |
current assets / current liabilities |
|
|
What does the current ratio show? |
how much we have available for every $1 of liabilities |
|
|
Operating activities include... |
cash effects of transactions that enter into the determination of net income |
|
|
What are the 3 statements of cash flow? |
Operating, investing, and financing |
