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Accounting Chap 7
Vocab
| Term | Definition |
|---|---|
| Financial Accounting | Area of Accounting that focuses on reporting information to external users. |
| Managerial Accounting | Area of Accounting that focuses on reporting information to internal users. |
| Financial Ratio | A comparison between two components of financial information. |
| Ratio Analysis | Calculation and interpretation of a financial ratio. |
| Vertical Analysis | Reporting an amount on a financial statement as a percentage of another item on the same financial statement. |
| Return on Sales (ROS) | The ratio of net income to total sales |