| A | B |
|---|
| Current ratio | Current Assets/Current liabilities |
| Debt to equity ratio | Total Liabilties/Owner's Equity |
| Return on equity ratio | Net Profit/Owner's Equity |
| Net Income ratio | Total Sales/Net Income |
| Assets | What a company owns |
| Liabilities | what a company owes |
| Owner's Equity | the value of the owners' investment in the business. |
| Balance sheet | The assets, liabilities, and owner's equity for a specific date. |
| Income statement | A report that shows the revenue, expenses, and net income or loss for a specific period. |
| Current ratio | Current Assets/Current liabilities |
| Debt to equity ratio | Total Liabilties/Owner's Equity |
| Return on equity ratio | Net Profit/Owner's Equity |
| Net Income ratio | Total Sales/Net Income |
| Assets | What a company owns |
| Liabilities | what a company owes |
| Owner's Equity | the value of the owners' investment in the business. |
| Balance sheet | The assets, liabilities, and owner's equity for a specific date. |
| Income statement | A report that shows the revenue, expenses, and net income or loss for a specific period. |
| start up budget | plans income and expenses from the beginning of a new business or major expansion until it becomes profitable. |
| operating budget | the financial plan for ongoing operations of the business for a specific period. |
| cash budget | an estimate of the actual money received and paid out for a specific period. |
| Asset records | names the building and equipment owned by the business, their original and current value, and the amount owned if money was borrowed to purchase the assets. |
| accounts receivable record | identified customers that made purchases using credit and the status of each account. |
| Inventory records | indentify the type and number of products on hand for sale. |
| records of accounts | identify all purchases and sales made using credit. |
| accounts payable record | identifies the companies from which credit purchases were made and the amount purchased, paid and owed. |
| depreciation record | identify the amount assets have decreased in value due to their age and use. |
