Accounting Terms

Front

financial accounting

Back

The area of accounting which focuses on reporting information to external users.

Front

managerial accounting

Back

The area of accounting that focuses on reporting information to internal users.

Front

statement of owner’s equity

Back

A financial statement that reports the changes in the capital account for a proprietorship for a period of time.

Front

financial ratio

Back

A comparison between two components of financial information.

Front

ratio analysis

Back

The calculation and interpretation of a financial ratio.

Front

vertical analysis

Back

Reporting an amount on a financial statement as a percentage of another item on the same financial statement.

Front

return on sales (ROS)

Back

The ratio of net income to total sales.