Term
|
Definition
| debt that must be paid within one year |
|
|
Term
|
Definition
| current liability consisting of bills owed to suppliers, plus wages and taxes due within the coming year |
|
|
Term
|
Definition
| debt that is not due for at least one year |
|
|
Term
|
Definition
| money that is invested in a company by its owners |
|
|
Term
|
Definition
| earnings retained by a firm for its use rather than paid out as dividends |
|
|
Term
| income statement (profit and loss statement) |
|
Definition
| financial statement listing a firm's annual revenues and expenses so that a bottom line shows annual profit or loss |
|
|
Term
|
Definition
| funds that flow into a business from the sale of goods or services |
|
|
Term
|
Definition
| costs that a company incurs to obtain revenues from other companies |
|
|
Term
|
Definition
| costs of obtaining materials for making the products sold by a firm during the year |
|
|
Term
|
Definition
| a perliminary, quick to calculate profit figure calculated from the firm's revenues minus its cost of revenues (the direct costs of getting the revenues) |
|
|
Term
|
Definition
| costs, other than the cost of revenues, incurred in producing a good or service |
|
|
Term
|
Definition
| gross profit minus operating expenses |
|
|
Term
| net income (net profit, net earnings) |
|
Definition
| gross profit minus operating expenses and income taxes |
|
|
Term
|
Definition
| financial statement describing a firm's yearly cash reciepts and cash payments |
|
|
Term
|
Definition
| detailed statement of estimated receipts and expenditures for a future period of time |
|
|
Term
|
Definition
| formal recording and reporting of revenues at the appropriate time |
|
|
Term
|
Definition
| guideline that financial statements shold not include just nmbers but should also furnish management's interpretations and explanations of those numbers |
|
|
Term
|
Definition
| financial ratio, either short or long-term, for estimating the borrower's ability to repay debt |
|
|
Term
|
Definition
| financial ratio for measuring a firm's potential earnings |
|
|
Term
|
Definition
| financial ratio for evaluating management's efficiency in using a firm's assets |
|
|
Term
| short-term solvency ratio |
|
Definition
| financial ratio for measuring a company's ability to pay immediate debts |
|
|
Term
|
Definition
| financial ratio for measuring a company's ability to pay current debts out of current assets |
|
|
Term
|
Definition
| a company's total liablities |
|
|
Term
|
Definition
| ablitity to finance an investment through borrowed funds |
|
|
Term
|
Definition
| profitability ratio measruing the net profit that the company earns for each share of outstanding stock |
|
|
Term
| code of professional conduct |
|
Definition
| the code of ethics for CPAs as maintained and enforced by the AICPA |
|
|
