Glossary
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Vertical Analysis
— Analysing financial
information on a statement compared to a
base-figure.
W
Weighted-Average Cost Method
—The
weighted-average cost method is used when a
business simply applies an average cost to all
of the units of a particular inventory item.
Working Capital
—Working capital is the
difference between current assets and current
liabilities.
Worksheet
—The worksheet can be used
to display the trial balance before and after
adjustments are made.They can also include
before and after closing entries are made.
Worksheets come in two sizes, six-column
and ten-column.The worksheet is only a
working paper for accountants, it is not
meant to be read by external users of financial
information.
