chapter 12 review Flashcards
a list of the income received, the expenses incurred, and the net profit or loss over a period of time
income statement
money supplied by the owner of a business
owner capital
a measure of the number of days needed to collect accounts receivable
average collection period
current assets divided by current liabilities
current ratio
cash plus receivables divided by current liabilities
quick ratio
a measure of how fast the inventory is moving
inventory turnover
owned by the business
assets
owed to others by the business
liabilities
wholesale price
list minus trade discount
worksheet which shows the business’s financial situation at a specific time
balance sheet
the point at which the amount of sales equal the cost
break-even point
capital supplied by others
creditor capital
assets minus liabilities
net worth
one dollar of profit to twenty dollars of sales
standard business ratio
an itemized bill listing goods, prices, shipping charges, and any other charges that apply
invoice
