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Unformatted text preview: gross profit The difference between the selling price of goods or services sold to customers during a period and the cost of the goods or services sold. current assets Cash or other resources that management expects to convert to cash or consume during the next fiscal year. operating expenses Costs of resources consumed as part of operating activities during a fiscal period and that are not directly associated with specific goods or services. long-term investments Occur when a company lends money to or purchases stock issued by other organizations and does not intend to sell those investments in the coming fiscal year. total revenue The amount earned from selling goods and services. property and equipment Long-term, tangible assets that are used in a company's operations. current liabilities Those obligations that management expects to fulfill during the next fiscal year. common stock The stock that conveys primary ownership in a corporation (also called capital stock). liquid assets Resources that can be converted to cash in a relatively short period. intangible assets Long-term legal rights resulting from the ownership of patents, copyrights, trademarks, and similar items. operating income The excess of gross profit over operating expenses. long-term liabilities Obligations not classified as current liabilities. dividends Distributions of cash or stock by a corporation to its stockholders. consolidated financial statements A report that includes the activities of the parent and its subsidiaries as though they were one company. working capital ratio The ratio of current assets to current liabilities. subsidiaries The companies owned or controlled by the parent corporation. amortization expense The allocation of the cost of long-term intangible assets to the fiscal periods that benefit from their use. working capital The difference between current assets and current liabilities. earnings per share A measure of the earnings performance of each share of common stock during a fiscal period. articulation The relationship among financial statements in which the numbers on one statement explain numbers on other statements. historical cost The purchase or exchange price of an asset or liability at the time it is acquired or incurred. comprehensive income The change in a company’s owners’ equity during a period that is the result of non-owner transactions and activities....
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