Accounting 1: Chapter 7 Vocabulary
Terms in this set (13)
A financial road map used by individuals and companies as a guide for spending and saving.
Comparative financial statements
Financial statements that provide information for multiple fiscal periods.
A negative balance that remains after total expenses are subtracted from total income.
The area of accounting which focuses on reporting information to external users.
A comparison between two components of financial information.
Interim financial statements
Financial statements providing information for a time period shorter than the fiscal year.
The area of accounting which focuses on reporting information to internal users.
Pay yourself first
A budgeting strategy of setting aside at least 10% of after-tax income for saving and investing.
The calculation and interpretation of a financial ratio.
Return on sales
The ratio of net income to total sales.
Any persons or groups who will be affected by an action.
A positive balance that remains after total expenses are subtracted from total income.
Reporting an amount on a financial statement as a percentage of another item on the same financial statement.