| A | B |
|---|
| income statement | report of the revenue, expenses and net income or loss for the accounting period |
| balance sheet | report of final balances of all asset, liability, and owner's equity accounts at the end of an accounting period |
| cash flow | amount of cash available to a business at any given time |
| statement of cash flows | report of how much cash a business took in and where the cash was spent |
| GAAP | gererally accepted accounting principles |
| financial reports | statement or document that summarizes the results of a business operation and provides pictures of its financial position |
| current assets | cash or any other item that can be converted to cash quickly and used by the business within a year |
| accounts receivable | amount customers owe a business |
| fixed assets | any item that will be held by a business for more than one year, such as equipment, truck or building |
| liabilities | debt of a business |
| accounts payable | amount of money a company owes to another business |
| comparative financial statements | financial statements with financial data from two accounting periods used as an analysis tool by a business owner |
| ratio analysis | comparison of two or more accounts on a financial statement and the evaluation of the relationship between these two amounts |
| current ratio | comparison of current assets and current liabilities used to indicate the ability of a business to pay its bills |
| debt ratio | measurement of the percentage of total dollars in a business that is provided by creditors |
| return on equity | measure of a corporation's profitability |
| return on assets | useful indicator of how profitable a company is relative to its total assets |
| earnings per share | portion of a company's profit allocated to each outstanding share of common stock |
| PE ratio | measure of the price paid for a share relative to the annual income or profit earned by the firm per share |
