Term
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Definition
| the recording & interpretation of financial info |
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Term
| Certified Public Accountant |
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Definition
| accountant officially certified by the state, usually responsible for signing annual reports and such |
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Term
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Definition
| internal use of statements by managers in planning and directing the organization |
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Definition
| an internal financial plan that forcasts income and expenses over a set period of time |
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Term
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Definition
| a firms economic resources or items of value that it ownes: cash, land, equipment |
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Definition
| debts that a firm owes others |
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Term
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Definition
| equals assets minues liabilities |
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Term
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Definition
| Assets = Liabilities + Owner's Equity |
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Term
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Definition
| a system of recording and classifying business transactions that maintains the balance of the accounting equation |
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Term
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Definition
| four step procedure of an accounting system: examining source documents, recording transactions, posting recorded transactions and preparing financial statements |
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Term
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Definition
| a time ordered list of account transactions |
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Definition
| a book or computer file with seperate sections for each account |
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Definition
| a financial report that shows an organizations profitability over a period of time |
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Term
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Definition
| total money received from sale of goods and other related business activities |
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Term
| cost of goods sold (COGS) |
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Definition
| amount of money a firm spent to buy or produce the products it sold |
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Definition
| revenues minus the cost of goods sold |
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Term
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Definition
| costs incurred in the day to day operations of an organization |
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Term
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Definition
| the process of spreading the costs of long-lived assets over the total number of accounting periods they plan to be used |
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Term
| net income / net earnings |
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Definition
| total profit (or loss) after all expenses including taxes have been deducted. |
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Term
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Definition
| a snapshot of an organizations financial position at a given moment |
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Term
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Definition
| money owed a company by its clients or customers |
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Term
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Definition
| money a company owes its suppliers |
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Term
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Definition
| all unpaid financial obligations incurred by an organization |
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Term
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Definition
| calculations that measure an organizations financial health |
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Term
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Definition
| measure the amount of operating income an organization is able to generate relative to its assets, owbers eq and sales |
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Definition
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Definition
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Term
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Definition
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Term
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Definition
| measure how well a firm uses assets to generate $1 of sales |
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Definition
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Definition
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Term
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Definition
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Definition
| Measure the speed a company can turn assets into cash |
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Term
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Definition
| Current Assets / Current Liabilities |
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Term
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Definition
| (Current Assets - Inventory) / Current Liabilities |
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Term
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Definition
| measure how much debt an org. is using relative to other sources of capital |
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Term
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Definition
| Total Debt / Total Assets |
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Term
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Definition
| Income before interest and taxes / Interest expense |
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Term
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Definition
| data used by investors to compare the performance of one company to another |
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Term
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Definition
| Net Income / # of shares outstanding |
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Term
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Definition
| Total dividends paid / # shares outstanding |
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