Chapter 5

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  1. Assets
    probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
  2. Liabilities
    1.       probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions.  
  3. Equity-
    1.       residual interest in the assets of an entity that remains after deducting its liabilities. In a business enterprise the equity is the ownership interest.
  4. Working Capital =
    Current Assets - Current Liabilities
  5. Working Capital
    represents the net amount of a company;s relatively liquid resources.
  6. Free Cash Flow =
    •  Net cash provided by opperating activities
    • -   Capital expenditures
    • -    Dividends      
    • __________________________

    Free Cash Flow  
Author:
tdelacruz
ID:
159119
Card Set:
Chapter 5
Updated:
2012-06-17 23:51:00
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Description:
Accounting class chapter 5
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