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AccountingChapter7
Terms
Term | Definition |
---|---|
Ratio Analysis | The Calculation and interpretation of a financial ratio. |
Financial Accounting | The area of accounting that focuses on reporting information to external users. |
Pay yourself First | A budgeting strategy of setting aside at least 10% of after-tax income for saving and investing. |
Budget | A financial road map used by individuals and companies as a guide for spending and saving |
Financial Ratio | A comparison between two components of financial information. |
Surplus | A positive balance that remains after total expenses are subtracted from total income. |
Deficit | A negative balance that remains after total expenses are subtracted from total income. |
Return On Sales | The ratio of net income to total sales. |
Vertical Analysis | Reporting an amount on a financial statement as a percentage of another item on the same financial statement. |
Stake Holders | Any persons or groups who will be affected by an action. |
Managerial Accounting | The area of accounting that focuses on reporting information to internal users. |