Financial Intelligence, Revised Edition

INDEX

above the line expenses, 65

accounting departments, 20, 64, 72

accounts payable (A/P)

—cash conversion cycle and, 236–237

—cash flow statement connection, 140

—days payable outstanding and, 182

—defined, 107

—income statement connection, 116

—profitability ratios and, 169–170

—working capital and, 228

accounts receivable (A/R)

—cash conversion cycle and, 236–237

—cash flow statement connection, 140, 149

—days sales outstanding and, 181, 229

—defined, 96–97

—reconciling profit and cash and, 141

—working capital and, 227

accounts receivable aging, 239

accruals, 11–13, 103–104

accrued expenses, 107, 116

accumulated depreciation, 99

accumulated earnings. See retained earnings

acid test, 177

acquisitions

—cash conversion cycle and, 238

—defined, ...