RSM219H1 Lecture Notes - Lecture 13: Coastline Community College, Financial Statement, Natural Disaster

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Chapter 13: financial statement analysis: sustainable income: is the most likely level of income to be obtained in the future; exclusive of irregular items. Irregular items: discontinued operations (shown net of tax, refers to the disposal of a significant component of a business, such as the major class of customers or an entire activity. Iii. comprehensive income: includes unrealized gains or losses normally reflected on the stockholders" equity section on the balance sheet. Liquidity ratios measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. Solvency ratios measure the ability of the company to survive over a long period of time. Profitability ratios measure the income or operating success of a company for a given period of time.