ACTIVITY RATIO Definition

Bookmark and Share

ACTIVITY RATIO is any accounting ratio that measures a firms ability to convert different accounts within their balance sheets into cash or sales.

Learn new Accounting Terms

PHANTOM PROFIT is hypothetical profit, i.e., no cash flow is generated. Appreciation on any asset, e.g. stock, is considered phantom profit unless or until the asset is sold, thereby generating cash flow.

CAPITAL SURPLUS is an archaic term. See PREMIUM ON CAPITAL STOCK.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.