Assets
What is Cash?
Money owed by a company on account to another party
What are Accounts Payable?
Demonstrate an ability to pay their debts and liabilities
What is a Liquidity Ratio?
The field that deals with the aggregation of financial information into external reports
What is Financial Accounting?
The Accounting Equation
What is Assets=Liabilities+Equity?
Tools used to further profit in a business setting.
What are supplies?
Interest owed to a bank or other party by a business
What is Interest Payable?
Demonstrate how efficiently a company operates
What is an Activity Ratio?
Investigates the financial statements and other systems of client companies
What is Public Accounting?
Net Income Equation
What is Revenues-Expenses=Net Income?
Extra assets that are unneeded at the moment but still kept.
What is Inventory?
Money owed by a company to be paid back within the calendar year.
What are Short-term Loans?
Demonstrate an ability to pay off their long-term debt
What is a Leverage Ratio?
When a complete set of financial information is unable to be found most companies need...
What is Forensic Accounting?
Cash Ratio Equation
What is Cash Ratio= Cash/Current Liabilities?
Amount owed to a company on account.
What are Accounts Receivable?
Money which could be owed in the future if legality is in question for the company.
What are Lawsuits?
Demonstrate how profitable the company is
What is a Performance Ratio?
Concerned with the proper compliance with tax regulations
What is Profit Margin=Net Income/Sales?
A large resource that could further grow the company if built upon.
What is Land?
Money that could be owed in the future if a product were to fail.
Demonstrate the current share price of a business
What is a Valuation Ratio?
Examining the internal workings and financial status of a company's systems and their weaknesses
What is Internal Auditing?
Break Even Point Equation
What is Break-Even Volume=Fixed Costs/Sales Price-Variable Cost Per Unit?