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Study sets matching "term:financial ratios = depict relationships between items on a firm's financial statements."

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Study sets matching "term:financial ratios = depict relationships between items on a firm's financial statements."

6 terms
Ch 7 Financial Statements for a Proprietorship
Adequate Disclosure
Accounting Period Cycle
Going Concern
stakeholders
Is applied when financial statements contain all information…
When a business always prepares financial statements at the e…
Is applied when financial statements are prepared with the ex…
Any persons or groups who will be affected by an action
Adequate Disclosure
Is applied when financial statements contain all information…
Accounting Period Cycle
When a business always prepares financial statements at the e…
18 terms
Chapter 8: Assessing a New Venture's Financial Strength and Viabilty
4 financial obligations
Profitability
Liquidity
Efficiency
Profitability, Liquidity, Efficiency, Stability
Companys ability to earn profit
Company's ability to meet its short term financial obligations
How productively a firm utilizes its assets relative to its a…
4 financial obligations
Profitability, Liquidity, Efficiency, Stability
Profitability
Companys ability to earn profit
11 terms
Chapter 15- Financial Statements for a corporation
Net sales
Cost of Merchandise sold
Gross profit on sale
financial ratio
total sales less sales discount and sales returns and allowan…
the original price of all merchandising sold during a fiscal…
the revenue remaining after cost of merchandise sold has been…
a comparison between other financial items of financial infor…
Net sales
total sales less sales discount and sales returns and allowan…
Cost of Merchandise sold
the original price of all merchandising sold during a fiscal…
11 terms
Chapter 15 - Financial Statements for a Corporation
Cost of Merchandise Sold
Current Liabilities
Earnings per Share
Financial Ratio
The original price of all merchandise sold during a fiscal pe…
Liabilities due within a short time, usually within a year
the amount of net income after federal income tax belonging t…
A comparison between two items of financial information.
Cost of Merchandise Sold
The original price of all merchandise sold during a fiscal pe…
Current Liabilities
Liabilities due within a short time, usually within a year
11 terms
ACCT - Chapter 15- Financial Statements for a corporation
Net sales
Cost of Merchandise sold
Gross profit on sale
financial ratio
total sales less sales discount and sales returns and allowan…
the original price of all merchandising sold during a fiscal…
the revenue remaining after cost of merchandise sold has been…
a comparison between other financial items of financial infor…
Net sales
total sales less sales discount and sales returns and allowan…
Cost of Merchandise sold
the original price of all merchandising sold during a fiscal…
22 terms
Financial statement (company) analysis
Financial analysis
Financial statement
Types of financial statements
Sources of data
Assessment of the firm's past, present and future financial c…
Summary of the operating, financing and investment activities…
Income statement... Balance sheet... Cash flow statement
Annual reports... Published collections of data... Investment sit…
Financial analysis
Assessment of the firm's past, present and future financial c…
Financial statement
Summary of the operating, financing and investment activities…
16 terms
Chapter 5 Financial Analysis
Financial Analysis
Steps to interpret and analyze financi…
Analysis of financial statements
Horizontal Analysis
Examination of financial data of an entity to determin its pr…
1. information must be understood by the user... 2. information…
a. Horizontal Analysis... b. Vertical Analysis... c.
Compares the change in each line item on a statement with the…
Financial Analysis
Examination of financial data of an entity to determin its pr…
Steps to interpret and analyze financi…
1. information must be understood by the user... 2. information…
11 terms
Chapter 15--Financial Statements for a Corporation
Net Sales
Cost of Merchandise Sold
Gross Profit on Sales
Financial Ratio
Total sales less sales discount and sales returns and allowan…
The original price of all merchandise sold duringa fiscal per…
The revenue remaining after cost of merchandise sold has been…
A comparison between two items of financial information
Net Sales
Total sales less sales discount and sales returns and allowan…
Cost of Merchandise Sold
The original price of all merchandise sold duringa fiscal per…
11 terms
Accounting I Chapter 15 - Financial Statements for a Corporation
Total sales less sales discount and sa…
The original price of all merchandise…
The revuenu remaining after cost of me…
A comparison between two items of fina…
net sales
cost of merchandise sold
gross profit on sales
financial ratio
Total sales less sales discount and sa…
net sales
The original price of all merchandise…
cost of merchandise sold
22 terms
Chapter 17: Financial Statement Analysis
Benchmark
Comparative financial statements
Current ratio
Debt ratio
A standard used to compare financial performance.
Financial statements that provide information for multiple fi…
A ratio that measures the relationship of current assets to c…
Total liabilities divided by total assets.
Benchmark
A standard used to compare financial performance.
Comparative financial statements
Financial statements that provide information for multiple fi…
11 terms
Acct. 1 - Ch. 15 Financial Statements for a Corporation
Net sales
Cost of merchandise sold
Gross profit on sales
Financial ratio
Total sales less sales discount and sales returns and allowan…
The original price of all merchandise sold during a fiscal pe…
The revenue remaining after cost of merchandise sold has been…
A comparison between two items of financial information
Net sales
Total sales less sales discount and sales returns and allowan…
Cost of merchandise sold
The original price of all merchandise sold during a fiscal pe…
56 terms
Chapter 9: Understanding Financial Statements
Describe the format and the items of t…
Describe the structure of the Statemen…
Describe the purpose of the Statement…
Describe the different types of liquid…
- one section of the Statement of Financial Position shows wh…
- Statement of Comprehensive Income presents revenues and exp…
- Statement of Changes in Equity represents the sum of all re…
- liquidity ratios are used to evaluate a company's ability t…
Describe the format and the items of t…
- one section of the Statement of Financial Position shows wh…
Describe the structure of the Statemen…
- Statement of Comprehensive Income presents revenues and exp…
16 terms
Chapter 23 Financial Statement Analysis
Accounts receivable turnover
Acid-test ratio
Asset turnover
Average collection period
A measure of the speed with which sales on account are collec…
A measure of immediate liquidity; the ratio of quick assets t…
A measure of the effective use of assets in making sales; the…
The ratio of 365 days to the accounts receivable turnover als…
Accounts receivable turnover
A measure of the speed with which sales on account are collec…
Acid-test ratio
A measure of immediate liquidity; the ratio of quick assets t…
40 terms
Chapter 2: A further look at financial statements
A classified balance sheet helps users…
classified balance sheet
Current Assets
Long-Term Investments... Assets that can be
1.the company's ability to pay its debts... 2.the claims of shor…
Current Assets... Long-term Investments... Property, Plant, and Equ…
Assets that are expected to be converted to cash or used in t…
Assets that can be converted into cash, but whose conversion…
A classified balance sheet helps users…
1.the company's ability to pay its debts... 2.the claims of shor…
classified balance sheet
Current Assets... Long-term Investments... Property, Plant, and Equ…
32 terms
Financial statement analysis and ratios
Two phases of financial statement anal…
Computation phase
Vertical analysis on the balance sheet
Horizontal analysis
Computation and interpretation
Vertical analysis horizontal n ratio analysis
On the balance sheet everything is recorded as a percentage o…
Percentage change for individual items on the financial state…
Two phases of financial statement anal…
Computation and interpretation
Computation phase
Vertical analysis horizontal n ratio analysis
21 terms
ENT 350 Chapter Eight Study Terms
profitability
liquidity
efficiency
efficiency
the ability to earn a profit
a company's ability to meet its short-term financial obligati…
how productively a firm utilizes its assets relative to its r…
EX: Southwest Airlines fast turnaround time
profitability
the ability to earn a profit
liquidity
a company's ability to meet its short-term financial obligati…
8 terms
chapter 3- working with financial statements
common-size statements
financial ratios
income statement
balance sheet
a standardized financial statement printing all items in perc…
relationships determined from a firm's financial information…
financial statement summarizing a firm's performance over a p…
financial statement showing a firm's accounting value on a pa…
common-size statements
a standardized financial statement printing all items in perc…
financial ratios
relationships determined from a firm's financial information…
8 terms
Chapters 7 & 8: Financial Statements for a Proprietorship & Recording Adjusting and Closing Entries for a Service Business
component percentage
stakeholders
accounting cycle
adjusting entries
the percentage relationship between one financial statement i…
any persons or groups who will be affected by an action
the series of accounting activities included in recording fin…
journal entries recorded to update general ledger accounts at…
component percentage
the percentage relationship between one financial statement i…
stakeholders
any persons or groups who will be affected by an action
28 terms
Financial Statement Analysis
accounts receivable analysis
accounts receivable turnover
common-sized statement
current position analysis
A company's ability to collect its accounts receivable.
The relationship between net sales and accounts receivable, c…
A financial statement in which all items are expressed only i…
A company's ability to pay its current liabilities.
accounts receivable analysis
A company's ability to collect its accounts receivable.
accounts receivable turnover
The relationship between net sales and accounts receivable, c…
57 terms
Reading 28: Financial Analysis Techniques
Ratios can be used to
'Average' in ratio calculations is con…
Vertical Common-size Data
Horizontal Common-size Data
- Project earnings and future cash flow... - Evaluate a firm's f…
... (Beginning Value + Ending Value) / 2
Stated as a percentage of sales for income statements or as a…
Present each item as a percentage of its value in a base year
Ratios can be used to
- Project earnings and future cash flow... - Evaluate a firm's f…
'Average' in ratio calculations is con…
... (Beginning Value + Ending Value) / 2
23 terms
A1 Chapter 7 Financial Statements
stakeholders
Adequate Disclosure
Going Concern
component %
Any person or groups who will be affected by an action.
Accounting concept that is applied when financial statements…
The accounting concept that is applied when financial stateme…
The % relationship between one financial statement item and t…
stakeholders
Any person or groups who will be affected by an action.
Adequate Disclosure
Accounting concept that is applied when financial statements…
68 terms
Financial Management Test #1
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
the process of planning and managing a firm's long-term inves…
the mixture of debt and equity maintained by a firm
a firm's short-term assets and liabilities; accounts included…
a business owned by a single individual
Capital Budgeting
the process of planning and managing a firm's long-term inves…
Capital Structure
the mixture of debt and equity maintained by a firm
182 terms
Financial
In making resource allocation decision…
Overview of Business Activities
goals vs strategies
Influencing Factors for formulating go…
Reliable and relevant information about financial position, p…
Establishing goals and strategies... Obtaining financing... Making…
Goals: End results toward which the firm directs its energies…
-Goals and strategies of competitors... -Barriers to entry of th…
In making resource allocation decision…
Reliable and relevant information about financial position, p…
Overview of Business Activities
Establishing goals and strategies... Obtaining financing... Making…
46 terms
ACCT 202 Chapter 13: Financial
studying the behavior off individual f…
dollar totals reported items on financ…
knowledge influences a user's decision
computing realtionshiop between two am…
Horizontal Analysis
Absolute Amounts
Materiality
Percentage Analysis
studying the behavior off individual f…
Horizontal Analysis
dollar totals reported items on financ…
Absolute Amounts
20 terms
BHS 10E Accounting Chapter 17 Financial Statement Analysis
Profitability Ratio
Benchmark
Comparative Financial Statements
Trend Analysis
Ratio that measures the ability of a business to generate inc…
A standard used to compare financial performance
Financial statements that provide information for multiple fi…
Analysis of changes over time
Profitability Ratio
Ratio that measures the ability of a business to generate inc…
Benchmark
A standard used to compare financial performance
32 terms
HKDSE BAFS - Financial Management - Financial Analysis
Financial management
Financial obligations
Investment decisions
Capital structure
This refers to the management of the financial resources and…
This refers to the money that a person or a firm is committed…
When a firm identifies good investment projects in order to m…
This refers to the mix between equity and debt of a firm.
Financial management
This refers to the management of the financial resources and…
Financial obligations
This refers to the money that a person or a firm is committed…
34 terms
Financial accounting - Chapter 13
DuPont model
Product differentiation
Cost differentiation
Time series analysis.
... companies can be profitable by achieving high profit marg…
Under this strategy, companies offer products with unique ben…
Under this strategy, companies attempt to operate more effici…
In this type of analysis, information on a single company is…
DuPont model
... companies can be profitable by achieving high profit marg…
Product differentiation
Under this strategy, companies offer products with unique ben…
23 terms
Financial Statements
Why Financial Statements?
GAAP
Who sets the GAAP
balance sheet
Management of business requires flow of information to make i…
Generally Accepted Accounting Principles... set of procedures to…
SEC, commonly accepted principles
used to inform reader of ending balance in ... company assets... li…
Why Financial Statements?
Management of business requires flow of information to make i…
GAAP
Generally Accepted Accounting Principles... set of procedures to…
11 terms
Ch 15 Financial Statements for a Corporation
net sales
cost of merchandise sold
gross profit on sales
financial ratio
total sales less sales discount and sales returns and allowan…
the original price of all merchandise sold during a fiscal pe…
the revenue remaining after cost of merchandise sold has been…
a comparison between two items of financial information
net sales
total sales less sales discount and sales returns and allowan…
cost of merchandise sold
the original price of all merchandise sold during a fiscal pe…
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
6 terms
Accounting Chapter 7 Vocabulary
financial accounting
managerial accounting
financial ratio
ratio analysis
the area of accounting that focuses on reporting information…
the area of accounting that focuses on reporting information…
a comparison between two components and the total sales
the calculation and interpretation of a financial ratio
financial accounting
the area of accounting that focuses on reporting information…
managerial accounting
the area of accounting that focuses on reporting information…
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
215 terms
Business financial
One key reason a long-term financial p…
Projected future financial statements…
The percentage of sales method
A _____ standardizes items on the inco…
there are direct connections between achievable corporate gro…
pro forma statements
separates accounts that vary with sales and those that do not…
common-size statement
One key reason a long-term financial p…
there are direct connections between achievable corporate gro…
Projected future financial statements…
pro forma statements
15 terms
Finance 360 - Chapter 3: Working with Financial Statements
Sources of Cash
Uses of Cash
Statement of Cash Flows
What three categories are expenses gro…
A firms activities that generate cash. A decrease in an asset…
A firm's activities in which cash is spent. Also known as app…
A firms financial statement that summarizes its sources and u…
Operating activities, financing activities and investment act…
Sources of Cash
A firms activities that generate cash. A decrease in an asset…
Uses of Cash
A firm's activities in which cash is spent. Also known as app…
10 terms
First three chapters review FM Wentworth
Stakeholder
Forms of orginization
Goal of a firm
Three financial statements
entities that may have conflicting perspective or view of an…
Sole proprietorship,partnership, corporation
Maximize long term value
Balance sheet, income statement, statement of cash flows
Stakeholder
entities that may have conflicting perspective or view of an…
Forms of orginization
Sole proprietorship,partnership, corporation
11 terms
Accounting Chapter 15 - Financial Statements for a Corporation
cost of merchandise sold
current liabilities
earnings per share
financial ratio
the total original price of all merchandise sold during a fis…
liabilities due within a short time, usually a year
the amount of net income after federal income tax belonging t…
a comparison between two items of financial information
cost of merchandise sold
the total original price of all merchandise sold during a fis…
current liabilities
liabilities due within a short time, usually a year
23 terms
ENT ch 8 Vocab
Financial Management
4 financial objectives of a firm
financial statement
forecasts
deals with two activities: raising money and managing a compa…
profitability, liquidity, efficiency, stability
a written report that quantitatively describes a firm's finan…
an estimate of a firm's future income an expenses, based on i…
Financial Management
deals with two activities: raising money and managing a compa…
4 financial objectives of a firm
profitability, liquidity, efficiency, stability
37 terms
EEE final exam
Merchant Bank account
4 financial objectives
Financial statements
forecast
If you plan to accept credit cards you'll need to set up a me…
1.) Profitability... -company's ability to make money... 2.) Liquid…
*written report that quantitatively describes a firms financi…
*estimate of a firms future income and expenses, based on pas…
Merchant Bank account
If you plan to accept credit cards you'll need to set up a me…
4 financial objectives
1.) Profitability... -company's ability to make money... 2.) Liquid…
33 terms
chapter 13: analyzing financial statements (ratio analysis)
factors influencing compony's potentia…
business strategy
DuPont model
product differentiation
economy-wide factors-overall health of economy (unemployment…
...
analyze the profitability of a business (idk if we need to kn…
companies offer products with unique benefits e.g. high quali…
factors influencing compony's potentia…
economy-wide factors-overall health of economy (unemployment…
business strategy
...
69 terms
A further look at financial Statements
The Classified Balance Sheet
Standard Classifications
Balance Sheet example:
Current Assets
- presents a snapshots at a point in time. ... - To improve unde…
- Assets: Current assets, Long-term investments, Property, pl…
assists that a company expects to convert to cash or use up w…
The Classified Balance Sheet
- presents a snapshots at a point in time. ... - To improve unde…
Standard Classifications
- Assets: Current assets, Long-term investments, Property, pl…
11 terms
Accounting II - Chapter 15 Financial Statements for a Corporation
net sales
costs of merchandise sold
gross profit on sales
financial ratio
Total sales less sales discount and sales returns and allowan…
the original price of all merchandise sold during a fiscal pe…
the revenue remaining after cost of merchandise sold has been…
a comparison between two items of financial information
net sales
Total sales less sales discount and sales returns and allowan…
costs of merchandise sold
the original price of all merchandise sold during a fiscal pe…
Principles of Finance - Financial Statement Analysis
Market Value Ratios
Common Size Income Statement
Profitability Ratios
Common Size Balance Sheet
These are ratios that are based on what is going on in the st…
All income statement items (revenues and expenses) are shown…
These ratios are intended to measure how well a firm is manag…
All items on the balance sheet (all assets, liabilities and e…
Market Value Ratios
These are ratios that are based on what is going on in the st…
Common Size Income Statement
All income statement items (revenues and expenses) are shown…
10 terms
Financial Statements for a Corporation
Net Sales
Cost of Merchandise Sold
Gross Profit on Sales
Financial Ratio
Total Sales less sales discount and sales return and allowances
Original price of all merchandise sold during a fiscal period
Revenue remaining after cost of merchandise sold has been ded…
Comparison between 2 items of financial information
Net Sales
Total Sales less sales discount and sales return and allowances
Cost of Merchandise Sold
Original price of all merchandise sold during a fiscal period
56 terms
Chapter 9: Understanding Financial Statements
Describe the format and the items of t…
Describe the structure of the Statemen…
Describe the purpose of the Statement…
Describe the different types of liquid…
- one section of the Statement of Financial Position shows wh…
- Statement of Comprehensive Income presents revenues and exp…
- Statement of Changes in Equity represents the sum of all re…
- liquidity ratios are used to evaluate a company's ability t…
Describe the format and the items of t…
- one section of the Statement of Financial Position shows wh…
Describe the structure of the Statemen…
- Statement of Comprehensive Income presents revenues and exp…
8 terms
Accounting Ch. 15 - Financial Statement Analysis
Meaning of numbers on financial statem…
Horizantal Analysis (Trend Analysis)
Trade Percentages
Vertical Analysis
1. Dollar and percentage changes on statements. ... 2. Common-si…
Changes between years in the financial data in both dollar an…
State several years financial data in terms of a base year, w…
Focuses on the relationship among financial statement items a…
Meaning of numbers on financial statem…
1. Dollar and percentage changes on statements. ... 2. Common-si…
Horizantal Analysis (Trend Analysis)
Changes between years in the financial data in both dollar an…
25 terms
Chapter 14: Financial Statement Analysis
Account receivable turnover
acid-test ratio
asset turnover
current ratio
a measure of the liquidity of accounts receivable; computed b…
a measure of a company's immediate short term liquidity; comp…
a measure of how efficiently a company uses its assets to gen…
a measure used to evaluate a company's liquidity and short te…
Account receivable turnover
a measure of the liquidity of accounts receivable; computed b…
acid-test ratio
a measure of a company's immediate short term liquidity; comp…
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