Chapter14Terms

Chapter14Terms - Acid-test (quick) ratio A measure of a...

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Acid-test (quick) ratio A measure of a company's immediate short-term liquidity; computed by dividing the sum of cash, short-term investments, and net receivables by current liabilities. Asset turnover A measure of how efficiently a company uses its assets to generate sales; computed by dividing net sales by average assets. Change in accounting principle The use of a principle in the current year that is different from the one used in the preceding year. Comprehensive income Includes all changes in stockholders' equity during a period except those resulting from investments by stockholders and distributions to stockholders. Current ratio A measure used to evaluate a company's liquidity and short-term debt-paying ability; computed by dividing current assets by current liabilities. Debt to total assets ratio Measures the percentage of total assets provided by creditors; computed by dividing total debt by total assets. Discontinued operations
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Chapter14Terms - Acid-test (quick) ratio A measure of a...

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