Term
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Definition
| a measure of a company's immediate short-term liquidity; computed by dividing the sum of cash, short-term investments, and net receivables by current liabilities |
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Term
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Definition
| a measure of how efficiently a company uses its assets to generate sales; computed by dividing net sales by average assets |
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Term
| change in accounting principle |
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Definition
| the use of a principle in the current year that is different from the one used in the preceding year |
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Term
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Definition
| includes all changes in stockholders' equity during a period except those resulting from investments by stockholders and distributions to stockholders |
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Term
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Definition
| a measure used to evaluate a company's liquidity and short-term debt-paying ability; computed by dividing current assets by current liabilities |
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Term
| debt to total assets ratio |
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Definition
| measures the percentage of total assets provided by creditors; computed by dividing total debt by total assets |
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Term
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Definition
| the disposal of a significant segment of a business |
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Term
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Definition
| the net income earned on each share of common stock; computed by dividing net income minus preferred dividends (if any) by the number of weighted average common shares outstanding |
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Term
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Definition
| events and transactions that are unusual in nature and infrequent in occurrence |
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Term
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Definition
| a technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage |
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Term
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Definition
| a measure of the liquidity of inventory; computed by dividing cost of goods sold by average inventory |
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Term
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Definition
| trading on the equity - borrowing money at a lower rate of interest than can be earned by using the borrowed money |
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Term
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Definition
| measures of the short-term ability fo the enterprise to pay its maturing obligations and to meet unexpected needs for cash |
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Term
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Definition
| measures the percentage of earnings distributed in the form of cash dividends; computed by dividing cash dividends by net income |
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Term
| price-earnings(P-E) ratio |
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Definition
| measures the ratio of the market price of each share of common stock to the earnings per share; computed by dividing the market price of the stock by earnings per share |
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Term
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Definition
| measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales |
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Term
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Definition
| measures of the income or operating success of an enterprise for a given period of time |
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Term
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Definition
| a measure of income that usually excludes items that a company thinks are unusual or nonrecurring |
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Term
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Definition
| indicates the level of full and transparent information provided to users of the financial statements |
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Term
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Definition
| an expression of the mathematical relationship between one quantity and another. the relationship may be expressed either as a percentage, a rate, or a simple proportion |
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Term
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Definition
| a technique for evaluating financial statements that expresses the relationship between selected financial statement data |
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Term
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Definition
| a measure of the liquidity of receivables; computed by dividing net credit sales by average net receivables |
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Term
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Definition
| an overall measure of profitability; computed by dividing net income by average assets |
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Term
| return on common stockholders' equity |
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Definition
| measures the dollars of net income earned for each dollar invested by the owners; computed by dividing net income minus preferred dividends (if any) by average common stockholders' equity |
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Term
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Definition
| measures the ability of the enterprise to survive over a long period of time |
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Term
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Definition
| measures of a company's ability to meet interest payments as they come due; computed by dividing income before interest expense and income taxes by interest expense |
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Term
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Definition
| borrowing money at a lower rate of interest than can be earned by using the borrowed money |
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Term
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Definition
| a technique for evaluating financial statement data than expresses each item within a financial statement as a percent of a base amount |
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