chp 17.2

Question 1

accounting cycle

Answer 1

the sequence of step business follow to record , summarize and report financial information

Question 2

stakeholder

Answer 2

people with interest in the business

Question 3

balance sheet

Answer 3

reports the assets liabilities and owner equity

Question 4

cash flow statement

Answer 4

reports how cash moves into and out of a business

Question 5

income statement

Answer 5

reports business revenue and expenses for a specific period

Question 6

financial ratio

Answer 6

evaluate overall financial condition of the business by showing relationship between selected figures on financial statement

Question 7

working capital

Answer 7

difference between current assets and current liabilities

Question 8

current asset

Answer 8

cash or any assets that will be exchange for cash or used within one year

Question 9

current liability

Answer 9

short term debt that must be paid in a year

Question 10

current ratio shows relationship of current assets to current liability

Question 11

debt ratio

Answer 11

shows percentage of dollars owned compared to assets owned

Question 12

net profit ratio

Answer 12

illustrates how much profit is generated per dollar of sales

Question 13

operating ratio

Answer 13

shows relationship of expenses to sales