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chapter 11 + 12


accrual the recognition of revenue or expenses that have gradually increased over time but have not yet been recorded
deferral a delay in recognizing revenue for cash already received or a delay in recognizing an expense for a bill already paid
horizontal analysis the comparison of the same items on a company's financial statements for two or more periods
vertical analysis The percentages for the current year are compared with the percentages of previous years or with the percentages of other companies in the same industry
liquidity ratio a measure of the ability of a business to pay its current debts and provide cash for unexpected needs
current ratio current assets divided by current liabilities. indicates whether a company can pay its bills and repay its loans
accounts receivable turnover rate number of times per year that the business collects the average balance of accounts receivable
profitability ratio used to evaluate the earnings performance of the business during the accounting period
ratio of stockholder's equity to liabilities this ratio is total stockholders' equity divided by total liabilities
Created by: bruhag1