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Chapter 15
Financial Statements for a Corporation
11
Accounting
12th Grade
01/08/2013

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Term
Net sales
Definition
total sales less sales discount and sales return and allowance
Term
Cost of merchandise sold
Definition
the total original price of all merchandise sold during a fiscal period
Term
Gross profit on sales
Definition
the revenue remaining after cost of merchandise sold has been deducted
Term
Financial ratio
Definition
a comparison between two items of financial information
Term
Earnings per share
Definition
the amount of net income after federal income tax belonging to a single share of stock
Term
Price-earnings ratio
Definition
the relationship between the market value per share and earnings per share of a stock
Term
Statement of stockholder's equity
Definition
a financial statement that shows changes in a corporation's ownership for a fiscal period
Term
Par value
Definition
a value assigned to a share of stock and printed on the stock certificate
Term
Current liabilities
Definition
liabilities due within a short time, usually within a year
Term
Long-term liabilities
Definition
liabilities owed for more than a year
Term
Supporting schedule
Definition
a report prepared to give detail to an item on a principal financial statement
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