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Chapter 17 Accounting: process of systematically collecting, analyzing, and reporting financial information. Private accountant: employed by a organization Private Accountants provide the following services: General accounting: recording business transactions and preparing financial statements Budgeting: Develop budgets for sales and operating expenses. Cost Accounting: Determining the cost of producing specific products or services. Tax Accounting: Planning tax strategy and preparing tax returns for the firm. Public Accountant: an accountant whose services may be hired on a fee …

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…a firms financial statements Net profit margin = Net income after taxes Net sales Return on equity = net income after taxes Owners’ equity Earnings per share = Net income after taxes Common-stock shares Outstanding Working Capital: difference between current assets and current liabilities. Current Ratio = current assets current liabilities acid-test ratio = current assets – inventory current liabilities accounts receivable turnover = net sales A/R Debts-to-assets ratio = total liabilities Total assets Debt-to-equity ratio = total liabilities owners’ equity Bibliography heros