Financial Statements
Is a business owned by one person.
Sole or single proprietorship
Addresses a very basic goal of any business.
Profitability
What are the two basic ways to establish ratios from a company's financial statement?
The two types of analysis.
Vertical Analysis and Horizontal Analysis
The language of business.
Accounting
It is the ability of the business to pay its currently maturing liabilities as they fall on its due date.
Liquidity
It is the process of comparing amounts in the financial statements within the same accounting period.
Vertical Analysis
What are the three types of business activities?
Service type, Merchandising type, Manufacturing type
Measures how a business can survive a long run.
Financial stability
It involves comparing amounts in the financial statements of two or more consecutive periods.
Horizontal Analysis
It shows the performance of the business for a given period of time. The performance known as results of operation is primarily measured in terms of the income earned through the effective and efficient use of resources.
Income statement
Is the ability to pay long-term liabilities.
Solvency
Horizontal Analysis is also known as?
Trend Analysis