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Glossary of Accounting Terms Used by Friedlander Advisory Services

Confused by certain terms used on our site? Our original glossary should cover whatever questions you may have about a term or phrase used on this site. However, if you still have questions about avoiding costs and our accounting procedures after examining this glossary, go ahead and <link to contact us page>get in touch with us to have your question taken care of personally.

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C

Capital Expenditures

The payment of money by a business to purchase or improve assets such as buildings or machinery.

Channel Enhancement

Improving the sales of existing products and services to new customers.

Channel Leverage

Improving the process of selling more products to existing customers.

Cost Structure

The relative proportion of each type of cost within an organization. This can also refer to the breakdown of costs required to manufacture a product.

Current Ratio

A company’s current assets (typically cash + receivables + inventory) divided by its current liabilities (debt due within a year). This ratio gives you a sense of a company’s ability to meet all short-term liabilities with liquid assets, should it need to. A ratio of 1 implies adequate current assets to cover current liabilities, and the higher above 1, the better. This ratio is an adequate measure of financial strength in the short term, and can be used on a comparative basis among companies. You must, however, be careful not to make implicit assumptions about a company’s earnings or cash flow sustainability simply from the current ratio.

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(727) 452-4926

Accounting Tampa
P.O. Box 14821
Clearwater, Florida 33766

Accounting Tampa | P.O. Box 14821, Clearwater, Florida 33766 | (727) 452-4926

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