Outstanding stock means the number of shares of issued stock that are being held by stockholders.
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- Return on common stockholders’ equity
Return on common stockholders’ equity refers to a measure of profitability that shows how many dollars of net income were earned for each dollar invested...
- Time ticket
The time ticket is a document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost.
- Inventory turnover
Inventory turnover is a ratio that measures the number of times on average the inventory is sold during the period. Its purpose is to measure the liquidity of the inventory.
- Direct write-off method
Direct write-off method is a method of accounting for bad debts that involves expensing accounts at the time they are determined to be uncollectible.
Drawings refer to the withdrawal of cash or other assets from an unincorporated business for the personal use of the owner. Drawings decrease the owner’s equity.
A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms. It normally represents the primary method...
- Debt to total assets ratio
Debt to total assets ratio is a solvency measure that indicates the percentage of total assets provided by creditors: computed as total debt divided by total assets.