Chapter 5

2. are the items of value the company owns
4. net income after tax
5. the process of a business enlarging or varying its range of products or field of operation.
8. reports financial information over a specific period of time
11. are debts that a business owes to others
13. investing roughly equal amounts of money at regular intervals
15. Is the most common profitability ratio. There are several ways i determine You, but the most frequently used method is to divide net profit by total assets.
16. Is a ratio used to evaluate a company's operational efficiency ROS is also known as a firm's operating profit margin. This measure provides insight into how much profit is being produced per dollar of sales. Formula:Income/Sales
17. are the earnings of a business from business activities
18. as the difference between a company's total assets and total liabilities.
19. The current ratio is mainly used to give an idea of a company's ability to pay back its liabilities.
20. The price earnings ratio is the ratio for valuing a company that measures its current shares price relative to its per share earnings.

1. Is a profitability ratio that measures there ability of a firm to generate profits from is shareholder investments in the company. In other words, the return on equity ratio shows how much profit each dollar of common stockholders.
3. net sales or net revenue
6. is the difference between assets and liabilities
7. are the amounts of business pays to operate the business and earn the revenue
9. shows what the company owns and what it owes
10. a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
12. Net income÷ outstanding common shares .
14. is a yearly record summarizing the financial condition of a corporation that must be distributed to the shareholders