Card Set Information
Terms used for balance sheet.
What are economic resources that the business plans to use in the future to make money?
What is the financial report that shows business assets, liabilities, and owner's equity as of a particular day?
When a company's assets equal its liabilities plus owner's equity, then you have what?
Assets that help a business or a person make money are considered what?
When money is changed into another asset that helps the business make money, it is considered what?
What are outsiders to whom the company owes money called?
Assets that can be used to pay current liabilities are considered what?
Debts that must be paid within one year or one operating cycle, whichever is longer, are called what?
The skill of producing financial statements from business transactions is called what?
What is the 12-month period a business uses to report the results of its operations called?
All financial statements contain a standard 3-line what?
The 3-line heading of a financial report is composed of what information?
- Name of the Company
- Name of the Report
- Date or time period
What are debts owed to people outside the company called?
If it is easier to change an asset into cash, then the asset contains more what?
What is the natural period of time before certain business activities tend to repeat - normally one year?
The portion of the business the owner gets to keep after paying off all creditors is called what?
The individual owner (without partners) of an unincorporated business is known as what?
Assets = ??? + ???
Liabilities + Owner's Equity
Owner's Equity = ??? - ???
Assets - Liabilities
Liabilities = ??? - ???
Assets - Owner's Equity
The financial statements report about a single business where every business gets its own set of books and accountants do not mix in the owner's personal financial information is known as what?
What is the formula for current ratio?
Current Assets / Current Liabilities
What are the formulas for debt ratio?
Total Liabilities / Total Assets, OR 100% - Equity Ratio = Debt Ratio
What are the formulas for Equity Ratio?
Total Equity / Total Assets, OR 100% - Debt Ratio = Equity Ratio