6 6 (-) Match the terms with the right definitions. net working capital operating expenses [ ] The calculation and interpretation of financial ratios using data taken from the firm's financial statements in order to assess its condition and performance The amount obtained by subtracting total current liabilities from total current assets; used to measure a firm's liquidity The total amount of investment in the firm minus any liabilities; also called net worth The expenses of running a business that are not directly related to producing or buying its products. The ratio of net profit to total owners' equity; measures the return that owners receive on their investment in the firm The amounts left over from profitable operations since the firm's beginning; equal to total profits minus all dividends paid to stockholders owners' equity ratio analysis [ ) retained earnings ( ] return on equity (ROE) ( ) 5 6 (-) Match the terms with the right definitions. long-term liabilities managerial accounting ( ] Accounting that provides financial information that managers inside the organization can use to evaluate and make decisions about current and future operations The ratio of net profit to net sales; also called return on sales. It measures the percentage of each sales dollar remaining after expenses, including taxes, have been deducted The amount obtained by subtracting all of a firm's expenses from its revenues, when the revenues are more than the expenses Claims that come due more than one year after the date of the balance sheet The amount left after deducting sales discounts and returns and allowances from gross sales The amount obtained by subtracting all of a firm's expenses from its revenues, when the expenses are more than the revenues net loss net profit (net income) [ ] net profit margin ( ] net sales ( ]