Seminar two

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School
Harvard University **We aren't endorsed by this school
Course
ACCOUNTING 23
Subject
Accounting
Date
Oct 17, 2023
Pages
1
Uploaded by gabrielmurray on coursehero.com
RATIOS Profitability Ratios Ratios that calculate the income or operating success of a company for a given period of time Basic earnings per share and price earnings ratio Liquidity Ratios Ratios that measure a company's ability to pay short term obligations and meet unexpected cash needs Current ratio and quick ratio Solvency Ratios Ratios that measure a company's ability to cover its long term debt and its likelihood of defaulting on obligations Debt to total assets ratio and debt to total equity ratio Basic Earnings per Share A measurement of the income earned on each common share Not externally comparable Income Available Basic Earnings Per Share = ¿ Common Shareholders ¿ Weighted Average Number of CommonShares Price Earning Ratio A metric that explains how the share price relates to net income (earnings) Externally comparable Price Earnings Ratio = Market Price Per Share Basic Earnings Per Share Statement of Income The statement of income reports the net income or loss for the period Statement of Changes in Equity The statement of changes in equity calculates retained earnings and the balance of common shares for the period Statement of Financial Positions
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Uploaded by gabrielmurray on coursehero.com