About this resource
- Publisher
- OpenStax
- Use
- Secondary finance instruction; ratio conventions and examples, not authoritative accounting guidance.
- Edition
- Second edition
- Relevant parts
- Sections 5.7, 6.2, 6.6, 7.1 through 7.4, and 8.2 through 8.4; common-size bases, operating-efficiency and profitability conventions, single-sum TVM, annuities, loan amortization, and stated-versus-effective rates
- Link checked
- Aug 7, 2026
Section 5.7 distinguishes the net-sales base of a common-size income statement from the total-assets base of a common-size balance sheet. Section 6.2 supplies secondary conventions for receivables and Inventory turnover, averages, days, and the operating-cycle discussion; Section 6.6 covers net profit margin, return on average assets, return on average equity, and the three-step DuPont identity. Chapters 7 and 8 provide a conventional instructional sequence for single-sum compounding and discounting, annuities, level-payment amortization, and quoted-versus-effective rates. This curriculum independently defines every convention, recomputes original fictional examples, and adds source, continuity, proxy, timing, unit, and interpretation controls that are not delegated to the text.
The edition page supplies the authors, publication date, attribution terms, and use restrictions recorded above. No OpenStax prose, tables, figures, or example facts are reproduced in the curriculum.