Chapter 13 - Measuring and Evaluating Financial Performance

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5 Terms

1
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Horizontal Trend Analyses

conducted to help financial statement used recognize important financial changes that unfold over time.

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Vertical Analyses

Focus on important relationships within financial statement. Income statement to sales, and Balance sheet to total assets.

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Profitability Ratios

Ability to generate income

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Liquidity Ratios

enoguh current assets to repay liabilities when due

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Solvency Ratios

ability to pay interest and repay debt when due