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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INCORPORATION is a legal process through which a company receives a charter and the state in which it is based allows it to operate as a corporation.

TOP-DOWN APPROACH TO INVESTING is an investment approach that first seeks to define major economic and industry trends, then proceeds to identify the individual companies most likely to benefit from those trends. See BOTTOM-UP APPROACH TO INVESTING.

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