STATEMENT OF FINANCIAL POSITION
Also known as the "balance sheet," a balance sheet - a financial snapshot of your business at a given point in time.
REPORT FORM
the statement of financial position can be presented in vertical format known as the report form, with the Assets Section above the Equities sections that, together, balance it.
ACCOUNT FORM
the entire statement of financial position is normally presented in horizontal layout, with an Assets page on the left, and a page for Liabilities and Equity.
ASSETS
A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
LIABILITIES
money that a company owes to outside parties, from bills it has to pay to suppliers to interest on bonds it has issued to creditors to rent, utilities, and salaries.
SHAREHOLDER'S EQUITY
also known as "net assets," since it is equivalent to the total assets of a company minus its liabilities, that is, the debt it owes to non-shareholders.
RETAINED EARNINGS
net earnings a company either reinvests in the business or use to pay off debt; the rest is distributed to shareholders in the form of dividends.
TREASURY STOCK
is the stock a company has repurchased. It can be sold at a later date to raise cash or reserved to repel a hostile takeover.
PREFERRED STOCK
assigned an arbitrary par value - as is common stock, in some cases - that has no bearing on the market value of the shares
CAPITAL SURPLUS
represents the amount shareholders have invested in excess of the "common stock" or "preferred stock" accounts, which are based on par value rather than market price.
INCOME STATEMENT
Summarizes a company's revenue (sales) and expenses quarterly and annually for its fiscal year. Also called as "statement of income", "statement of earnings", "statement of operations", and "statement of operating results." Some professionals call it "P & L" which stands for profit and loss statement.
MULTI-STEP APPROACH
Shows the various profitability stages from gross profit, operating profit up to the net profit which is essential in terms of cost control and management.
SINGLE STEP APPROACH
It simply identifies the income that comes from professional fee and all expenses grouped together to arrive at net profit.
FINANCIAL STATEMENT ANALYSIS
weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the income statement account.
HORIZONTAL OR TREND ANALYSIS
Comparison of two or more year's financial data is known as horizontal analysis, or trend analysis. It is facilitated by showing changes between years in both peso and percentage form.
TREND PERCENTAGE
Horizontal analysis of financial statements can also be carried out
VERTICAL ANALYSIS
procedure of preparing and presenting common size statements.
PROBABILITY RATIOS
this ratio measure the results of business operations or overall performance and effectiveness of the firm.
GROSS PROFIT RATIO
this ratio reflects efficiency with which a firm produces its products.
NET PROFIT RATIO
This ratio measures the overall profitability and is very useful to the proprietors or owners of the company.
OPERATING RATIO
this ratio shows the operational efficiency of the business
RETURN ON SHAREHOLDER'S INVESTMENT OR NET WORTH
this ratio is one of the most important ratios used for measuring the overall efficiency of a firm.
RETURN ON EQUITY CAPITAL
this ratio is more meaningful to the equity shareholders who are interested to know profits earned by the company and those profits which can be made available to pay dividends to them.
DIVIDEND YIELD RATIO
this ratio helps as intending investor is knowing the effective return he is going to get on the proposed investment.
LIQUIDITY RATIO
this ratio measure the short-term solvency of financial position of a firm. These ratios are calculated to comment upon the short-term paying capacity of a concern or the firm's ability to meet its current obligations
CURRENT RATIO
this ratio is a general and quick measure of liquidity of a firm. It is an index of the firms financial stability, technical solvency and strength of working capital.
LIQUID / ACID TEST / QUICK RATIO
this ratio measures the firm's capacity to pay off current obligations immediately and is more rigorous test of liquidity than the current ratio.
ACTIVITY RATIO
this ratio calculated to measure the efficiency with which the resources of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales
INVENTORY TURNOVER RATIO
this ratio measures the velocity of conversion of inventory into sales.
DEBTORS / RECEIVABLES TURNOVER RATIO
this ratio indicates the number of times the debtors are turned over a year
CREDITORS/ PAYABLE TURNOVER RATIO
this ratio measures the number of days by the firm to pay its creditors.
WORKING CAPITAL TURNOVER RATIO
this ratio measures the efficiency with which the working capital is being used by a firm.
FIXED ASSETS TURNOVER RATIO
this ratio measures the efficiency and profit earning capacity of the concern.
LONG TERM SOLVENCY OR LEVERAGE RATIOS
this ratio conveys a firm's ability to meet the interest costs and payment schedules of its long term obligations.
DEBT TO EQUITY RATIO
this ratio indicates the proportionate claims of owners and the outsiders against the firm assets.
PROPRIETY OR EQUITY RATIO
This ratio sheds light on the general financial strength of the company.
STOCK EXCHANGE
is an association , organization , or a individual which is established for the purpose of assisting , regulating , and controlling business in buying ,selling and dealing in securities."
NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATION (NASDAQ)
provides an open, transparent and competitive platform to enable buyers and sellers to efficiently interact and access pools of liquidity
LONDON STOCK EXCHANGE
the fourth largest exchange it he world after New York Stock Exchange, NASDAQ and Tokyo Stock Exchange. It is the largest exchange in Europe.
PHILIPPINES STOCK EXCHANGE
is a private non-profit and non-stock organization created to provide and ensures a fair, efficient, transparent and orderly market for the purchase and sale of securities such as stocks, warrants, bonds, options and others.
STOCKS
Shares of ownership in a corporation
RISK-REWAR D Concept
The higher the risk of an investment instrument, the higher return you should receive in the future.
PRICE APPRECIATION
it is when your invested money is appreciated or gains value over period of time.
DIVIDENDS
when companies give a part of their earnings to its shareholders
PREFERRED STOCK
A security whereby the holder has a higher claim on the assets and earnings of the company. Have priority over common shareholders in the event of liquidation and they have a fixed dividend
COMMON STOCK
Security whereby the holder exercise control by electing board of directors and voting on corporate policies or matters
CLASS A STOCK
Shares that can be bought or sold solely by Filipino investors.
CLASS B STOCK
Shares that can be bought or sold by both Filipinos and foreign investors.
BLUE CHIPS
Share of stable, profitable, and well-known public companies. They have a long history of steady revenues and dividend payments They exhibit more modest but dependable returns and are relatively of lower risk
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