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  1. Accounts Receivable Turnover
    The number of times charge accounts are paid off per year; a turnover is a sale on account and subsequent repayment (930)
  2. Base Year
    The year used as a basis for comparison (917)
  3. Common-Size Statement
    A financial statement using vertical analysis with all items expressed as percentages; allows comparison of one company with another as well as with industry averages (926)
  4. Current Ratio
    Current assets divided by current liabilities (928)
  5. Earnings per Share
    The proportionate amount of a company's net earnings for each outstanding share of common stock (934)
  6. Horizontal Analysis
    Comparing the same item in the financial statements of an enterprise for two or more periods (917)
  7. Liquidate
    To wind up the affairs of a business by paying off creditors and selling the assets for cash (933)
  8. Merchandise Inventory Turnover
    The number of times a company's average inventory is sold during a given year (930)
  9. Price-Earnings Ratio
    A common measure for deciding whether a stock's market price is reasonble; calculated by dividing the market price per share by the annual earnings per share (934)
  10. Profitability
    An enterprise's ability to earn a reasonable profit on the owners' investment (916)
  11. Quick Assets
    Cash, current Notes Receivable, Net Accounts Receivable, Interest Receivable, and Marketable Securities (928)
  12. Quick Ratio
    Quick assets divided by current liabilities. Also called acid-test ratio (928)
  13. Solvency
    An enterprise's ability to pay its debts (916)
  14. Trend Percentages
    Percentages calculated by dividing a specific item on an income statement by the corresponding item on the base year income statement (925)
  15. Vertical Analysis
    Portraying items on financial statements as percentages (or propotional parts) of a given item on the same financial statement (921)
  16. Working Capital
    The excess of current assets over current liabilities
Card Set:
2012-04-22 03:18:51
precious chapter 23

chapter 23 college accounting
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