Chapter 10: Understanding Financial Statements

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Across
  1. 3. Assets that can be converted into cash relatively quickly
  2. 6. Stock shares that represent ownership in a corporation
  3. 9. Depreciable assets at their original cost, before any depreciation expense has been taken
  4. 13. A firm's raw materials and products be held in anticipation of eventual sale
  5. 14. The cost of money borrowed
  6. 16. Financing provided by creditors
  7. 19. Physical assets that will be used in the business for more than one year, such as equipment, buildings, and land
  8. 21. A financial report showing a firm's sources of cash as well as its uses of cash
  9. 22. A measure of the rate of return that owners receive on their equity investment, calculated by dividing net profits by owner's equity
  10. 24. Owners' investments in a company plus cumulative net profits retained in the firm
  11. 26. The cost of a firm's building and equipment, allocated over the asset's useful life
  12. 27. A measure of a company's relative liquidity, determined by dividing current assets by current liabilities
  13. 28. Earnings that may be distributed to the owners or reinvested in the company
Down
  1. 1. Money in the bank and may include a security that can be sold very quickly, such as a government security
  2. 2. A financial report showing the amount of profits or losses from a firm's operation over a given period of time
  3. 4. Operating expenses that have been incurred by not paid
  4. 5. Earnings after operating expenses but before interest and taxes are paid
  5. 7. A long-term loan to purchase a building or land
  6. 8. The degree to which a firm has working capital available to meet maturing debt obligations
  7. 10. Earnings after operating expenses and interest expenses but before taxes
  8. 11. The impact (positive of negative) of financing with debt rather than with equity
  9. 12. A measure of what percentage assets us financed by debt, determined by dividing total debt by total assets
  10. 15. A distribution of a firm's profits to the owners
  11. 17. A financial report showing a firm's assets, liabilities, and equity at a specific point in time
  12. 18. Profits as a percentage of sales
  13. 20. Profits not paid out as dividends over the life of a business
  14. 23. Sales less the cost of goods sold
  15. 25. The cost of producing or acquiring goods or services to be sold by a firm