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Accounting
Equations
Records
Financial Statements
Ratios
100
The system within a business for converting raw data from documents into information that will help a manager make business decisions.
What is Accounting
100
Liabilities + Owners Equity equals this.
What are assets?
100
This is what your business owns.
What are Assets?
100
This equation, assets equal liabilities + owners equity, is the basis for this.
What is the Balance Sheet?
100
Relationships that show the relative size of some financial quantity to another financial quantity of a firm.
What are Ratios?
200
Where we first record every transaction.
What is the Business Journal.
200
Revenue - expenses equals this.
What is profit?
200
Comparing an individual firm's ratios against the standard ratios for the firm's industry.
What is Industry Analysis?
200
This equation, cash flow equals receipts minus disbursements is the basis for this.
What is a Cash Flow statement?
200
This ratio measures a firm's ability to turn sales into profits and to earn profits on assets committed.
What is a profitability ratio?
300
Entries are transferred here, and then we create financial statements from them.
What are ledgers?
300
Receipts - disbursements equal this.
What is Cash flow?
300
This involves comparing your own numbers to your numbers from last year and the year before.
What is Trend Analysis?
300
This equation, profit = revenue - expenses represents the activity described on this.
What is the Income Statement?
300
This ratio measures a firm's ability to meet its short term obligations to creditors as they come due.
What is a liquidity ratio?
400
This is the third of the three major financial statements, but it is not the balance sheet nor the Income Statement.
What is the statement of Cash Flows?
400
This is what your business owes.
What are liabilities?
400
Taking an industry leader or major competitor, computing their ratios, and then comparing the small business to that firm.
What is Benchmarking?
400
This is what GAAP stands for.
What is generally accepted accounting principles?
400
This ratio measures the speed with which various assets are converted into sales or cash.
What is an activity ratio?
500
This is the last step of the accounting process.
What is compute key ratios?
500
This is what you, the owner, have invested in the business.
What is Owner's Equity?
500
This is what you need to state in the preparation of pro forma statements.
What are assumptions?
500
These are financial statements that project what a firm's financial condition will be in the future.
What are Pro Forma Financial Statements?
500
This is a ratio that measures the extent to which a firm uses debt as a source of financing and its ability to service that debt.
What is a leverage ratio?