| A | B |
|---|
| current assets | they are expected to be converted to cash within one year |
| cash | all monies that are available without restriction |
| marketable securities | investments bought with excess cash |
| receivables | money owed to the company that is due within one year |
| inventories | merchandise that must be sold |
| fixed assets | land, building, machinery |
| intangible assets | assets that cannot be seen or touched, legal rights, patents, copyrights |
| current liabilities | payments that are due within one year |
| accounts payable | monies due to vendors for purchases made by the company |
| accrued wages and expenses | money owed to employees |
| current maturity of long term debt | the portion of long term debt due within one year |
| long term liabilities | amounts that are due in more than one year |
| stockholders equity or net worth | amount of money invested in the business by its owners plus accumulated earnings |
| retained earnings | cumulative profits not paid out in divdends |
| Net sales | sales less any returns or allowances |
| cost of sales | cost associated with producing the product or goods sold |
| gross profit | net sales less cost of sales |
| EBIT or operating income | income before interest and taxes |
| EBT | income after interest but before taxes |
| current ratio | liquidity ratio that shows a company's ability to meet short term obligations |
| quick ratio | liquidity ratio that is the same as current ratios but factors out inventories |
| long term debt ratio | measures how much of a company's assets are financed with long term debt |
| return on assets | measures how effectively a company uses it assets to generate a profit |
| return on equity | shows how effectively shareholders money is used |
| price to earnings ratio | shows how many times greater the stock price is than the company's earnings |
| earnings per share | measures the earnings of the company over a specified time period per share |
| PEG ratio | compares a company's PE ratio with its expected growth rate |
