COMPANY Definition

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COMPANY is an organized group of people to perform an activity, business or industrial enterprise.

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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:

  1. Altman Z-Score - a valid predictor or bankruptcy, and,
  2. Sustainable Growth Rate - shows the degree to which a concern can grow using their retained earnings to fund growth.

ENGAGEMENT LETTER is a letter that represents the understanding about the engagement between the client and the CPA. The letter identifies the financial statements and describes the nature of procedures to be performed. It includes the objectives of the procedures, an explanation that the financial information is the responsibility of the company's management, and a description of the form of report.

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