ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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LOSS, in finance, is when expenses exceed sales or revenues, i.e. goods or services are sold for less than their cost.
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PREDICTOR RATIOS: Most ratios are descriptive in nature; that is, they describe the firm as it is now. As you might expect, Predictor Ratios provide suggestions about likely future conditions for the firm. VentureLine provides two industry standard Predictor Ratios:
- Altman Z-Score - a valid predictor or bankruptcy, and,
- Sustainable Growth Rate - shows the degree to which a concern can grow using their retained earnings to fund growth.
SOP is Statements of Position (within the AICPA or FASB) or Standard Operating Procedure.