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Chapter 7

TermDefinition
Financial Accounting The area of accounting which focuses on reporting information to external users.
Managerial Accounting The area of accounting that focuses on reporting information to internal users.
Financial Ratio A comparison between two components of financial information.
Ratio Analysis The Calculation and interpretation of a financial ratio.
Vertical Analysis Reporting an amount on a financial statement as a percentage of another item on the sane financial statement.
Return on Sales(ROS) The ratio of net income to total sales.
Created by: K.niltiak
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