Notable Quotable
"If stock market experts were so expert, they would be buying stock, not selling advice. -Norman R. Augustine"

Term of the Day

cash flow statement

summary of the actual or anticipated incomings and outgoings of cash in a firm over an accounting period (month, quarter, year).
It answers the questions:
  • Where the money came (will come) from?
  • Where it went (will go)?
Cash flow statements assess the amount, timing, and predictability of cash-inflows and cash-outflows, and are used as the basis for budgeting and
Learn more about this term
Usage Example
The cash flow statement is divided into financing activities, operating activities and investment activities.
Term of the Day

quick ratio

A measure of a company's liquidity and ability to meet its obligationsQuickratio, often referred to as acid-test ratio, is obtained by subtracting inventoriesfrom current assets and then dividing by current liabilitiesQuick ratio is viewed as a sign ofcompany's financial strength or weakness (higher numbermeans stronger, lowernumber means weaker). 

For example, if current assets equal...
Learn more about this term
Usage Example
The quick ratio is used to see how financially strong a company is. Companies want to aim to achieve a value above 1