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

Study sets
Classes
Users

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

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…
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
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…
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…
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
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
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
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…
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…
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…
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…
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…
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
183 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…
76 terms
Chapter 2 - Introduction to the Financial Statements
Financial statements are...
Two features of the statements need to…
Form of financial statements
Content of financial statements
are the lens on a business. They draw a picture of the busine…
Form and Content
describes how the financial statements are organized and how…
fills out the form, it colors the sketch. Content describes h…
Financial statements are...
are the lens on a business. They draw a picture of the busine…
Two features of the statements need to…
Form and Content
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…
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…
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
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…
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…
25 terms
A1 Chapter 7 Financial Statements
stakeholders
Adequate Disclosure
Going Concern
component %
Any person or groups who will be affected by an action.
Accounting principle that is applied when financial statement…
The accounting principle that is applied when financial state…
The % relationship between one financial statement item and t…
stakeholders
Any person or groups who will be affected by an action.
Adequate Disclosure
Accounting principle that is applied when financial statement…
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…
12 terms
Working with Financial Statements (Ch 3)
Sources of Cash
Uses of Cash
Statement of Cash Flows
Common size statement
Firms activity that generate cash
Firms activities in which cash is spent. Aka applications of…
Firms financial statement that summarizes its sources and use…
standardized financial statement presenting all items in perc…
Sources of Cash
Firms activity that generate cash
Uses of Cash
Firms activities in which cash is spent. Aka applications of…
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
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
44 terms
Chapter 3 Working With Financial Statements
Activities of the firm that generate c…
Activities of the firm in which cash i…
The financial statement that summarize…
Standardizes items on the income state…
sources of cash
uses of cash
statement of cash flows
Common-size statement
Activities of the firm that generate c…
sources of cash
Activities of the firm in which cash i…
uses of cash
Financial Accounting Chapter 13
Component Percentage
Efficient Markets
Market Tests
Ratio (Percentage) Analysis
Express each item on a particular financial statement as a pe…
Securities markets in which prices fully reflect available in…
Ratios that tend to measure the market worth of a share of st…
An analytical tools that measures the proportional relationsh…
Component Percentage
Express each item on a particular financial statement as a pe…
Efficient Markets
Securities markets in which prices fully reflect available in…
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
36 terms
Financial Terms
Bond
Commission
Common Stock
Preferred Stock
a certificate representing a promise by a corporation or gove…
fee paid to a broker for the service of buying, selling, and…
stock that does not pay a fixed dividend and holds no voting…
stock that entitles the owner to preferential treatment in th…
Bond
a certificate representing a promise by a corporation or gove…
Commission
fee paid to a broker for the service of buying, selling, and…
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…
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…
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
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…
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
Chapter 14 - Financial Statement Analysis
Accounts Receivable Analysis
Accounts Receivable Turnover
Accumulated Other Comprehensive Income
Analytical Methods
A company's ability to collect its accounts receivable.
The relationship between sales and accounts receivable, compu…
The cumulative effects of other comprehensive income items re…
The amount and percentage of financial statement items within…
Accounts Receivable Analysis
A company's ability to collect its accounts receivable.
Accounts Receivable Turnover
The relationship between sales and accounts receivable, compu…
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
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…
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
30 terms
FIN Chapter 3: Working With Financial Statements
Sources of Cash
Uses of Cash
Statement of Cash Flows
Operating Activity
a firm's activities that generate cash... - decrease in left or…
firm's activities where cash is spent... - increase in left or d…
financial statement that summarizes its sources and uses of c…
net income and changes in most current accounts
Sources of Cash
a firm's activities that generate cash... - decrease in left or…
Uses of Cash
firm's activities where cash is spent... - increase in left or d…
Financial Ratios
Gross Margin Ratio
Cost Ratio
SG&A Ratio
EBIT Margin
(Sales-COGS)/Sales
COGS/Sales
SG&A/Sales
EBIT/Sales
Gross Margin Ratio
(Sales-COGS)/Sales
Cost Ratio
COGS/Sales
107 terms
Financial Management Chapter 4
Financial Analysis
Financial Analysis
Credit Managers and Investors
Identify company problems... Identify co…
Process of using financial information to assist in investmen…
Employee performance... Efficiency analysis... Identification of…
A Financial Analysis is used by?
Goal of Financial Analysis
Financial Analysis
Process of using financial information to assist in investmen…
Financial Analysis
Employee performance... Efficiency analysis... Identification of…
26 terms
Accounting Chapter 12: Financial Statement Analysis
Acid-test ratio
Aggressive accounting practices
Asset turnover
Average collection period
Cash, current investments, and accounts receivable divided by…
Practices that result in reporting higher income, higher asse…
Net sales divided by average total assets, which measures the…
Approximate number of days the average accounts receivable ba…
Acid-test ratio
Cash, current investments, and accounts receivable divided by…
Aggressive accounting practices
Practices that result in reporting higher income, higher asse…
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…
28 terms
Chap 15 - Financial Statement Analysis (Accounting Terms)
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…
37 terms
FIN 300 Ch 3- Working with Financial Statements
Sources of cash
Uses of cash
Statement of cash flows
Common-size statement
A firm's activities that generate cash.
A firm's activities in which cash is spent.
A firm's financial statement that summarizes its sources and…
A standardized financial statement presenting all items in pe…
Sources of cash
A firm's activities that generate cash.
Uses of cash
A firm's activities in which cash is spent.
1 of 10