| A | B |
|---|
| Financial Statement | summerize the changes resulting from business transactions that occur during an accounting period |
| Income Statement | reports the net income or net loss for a specific period of time |
| Statement of Changes in Owners Equity | summerize changes in the owner's capital account as a result of business transactions that occur during the period |
| Balance Sheet | report of the balances in the permanent accounts at the end of the period |
| Report Form | listing the balance sheet sections one under the other |
| Statement of Cash Flows | summerizes the the amount of cash the business took in |
| Ratio Analysis | the process of evaluating the relationship between various amounts in the financial statements |
| Profitability Ratio | use to evaluate the earnings performance of the business during the accounting period |
| Return on Sales | ratio to examine the portion of each sales dollar that represents profit |
| Current Assets | are those used up or converted to cash during the normal operating cylce of the business |
| Current Liabilities | debts of the business that must be apid within the next accounting period |
| Working Capital | the amount by which current assets exceed curent liabilities |
| Liquidity Ratio | a measure of the ability of a business to pay its current debts as they become due and to provide for an unexpected need for cash |
| Current Ratio | reflects the relationship between current assets and current liabilities |
| Quick Ratio | a measure of the relationship between short-term assets and current liabilities |
