| A | B |
|---|
| stakeholder | persons or groups affected by an action |
| budget | financial road map used by individuals and companies as a guide for spending and saving |
| surplus | positive balance after expenses are subtracted from total income |
| deficit | negative balance after expenses are subtracted from total income |
| financial ratio | comparison between two components of financial information |
| ratio analysis | interpretation of a financial ratio |
| vertical analysis | reporting an amount on a financial statement as a percentage of another item on the same financial statement |
| return on sales | ratio of net income to sales |
| managerial accounting | area of accounting that focuses on reporting information to internal users |
| financial accounting | the area of accounting that focuses on reporting information to external users |
| Pay yourself first | budgeting strategy of setting aside at least 10% of after tax income for saving and investing |
| going concern | when financial statements are prepared with the expectation that the business will remain in business indefinitley |
| comparative financial statements | Financial statements that provide information for multiple fiscal periods. |
| interim financial statements | Financial statements providing information for a time period shorter than the fiscal year. |
