ACCOUNTING RATIO Definition

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ACCOUNTING RATIO is the result of dividing one financial statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships.

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CORPORATION is a type of business organization chartered by a state and given many of the legal rights as a separate entity.

STATEMENT OF CASH FLOWS measures the flow of money in and out of a business. One of four financial statements found in the annual report, it categorizes a companys cash receipts and disbursements for a given fiscal year by three major activities: operations, investments and financing.

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