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A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:

Evaluation of company performance does not include analysis of (1) past and current performance, (2) current financial position, and (3) future performance and risk.

The ability to provide financial rewards sufficient to attract and retain financing is called:

When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. After 4 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:

Market prospects are the ability to generate positive market expectations.

One of several ratios that reflects solvency includes the:

Horizontal analysis is the comparison of a company’s financial condition and performance across time.

Transactions are recorded first in the ledger and then transferred to the journal.

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

A ratio expresses a mathematical relation between two quantities and can be expressed as a percent, rate, or proportion.