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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MONEY MEASUREMENT CONCEPT stipulates that all business transactions must be expressed in money terms, i.e., if something cannot be measured in money; it will not be included in accounting books.

REPURCHASE AGREEMENT (REPO) is a contract in which an investor or securities dealer sells a United States security to a bank or other corporation and agrees to repurchase the security later at a specified time and price, including interest. The investment period ranges from one day to several months, and the purchaser earns interest competitive with money market rates.

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