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|The area of accounting that focuses on reporting info to external users.
|The area of accounting that focuses on reporting info to internal users.
|FYI – Full Disclosure
|When financial statements contain all info necessary to understand a businesses financial condition. AKA Adequate Disclosure
|FYI – Going Concern
|When financial statements are prepared with the expectation that a business will remain in operation indefinitely.
|FYI – 4 sections of Income Statement
|Heading, Revenue, Expenses, Net Income/Net loss
|FYI – 2 items Income Statement compares
|Revenue vs. Expenses
|A comparison between two components of financial info.
|The calculation and interpretation of a financial ratio.
|Reporting an amount on a financial statement as a percentage of another item on the same financial statement.
|Return on Sales
|FYI – ROS used to determine
|How much profit is being produced per dollar of sales.
|FYI – ROS used by analysts
|determine profit per dollar sold.
|FYI – 4 sections of Balance Sheet
|Heading, assets, liabilities, and owners equity.
|FYI – Balance Sheet proves
|FYI – steps to calculate Current Capital
|Add the capital amount, and the difference between the net income and the drawing account. Record the sum