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7 Cards in this Set
- Front
- Back
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Liabilities are...
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...(1) probable future economic sacrifices attributable to a need to transfer assets or provide services to other entities in the future (2) arising from present obligations of a particular entity (3) as a result of past transactions or events
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Current liabilities are generally valued...
Non-current liabilities are generally measured... |
...at the expected cost to discharge the obligation
... at their present value |
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Owner's equity (stockholders equity)...
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...represents owners' claims on the net assets of the firm. Simply equal to assets minus liabilities
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Retained Earnings
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Accumulated earnings less dividends of the firm since inception
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Book Value of Shareholders Equity
Market Value of Shareholders Equity |
= Assets - Liabilities
= Shares Outstanding * Share Price |
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An account is...
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...a record of the impact of every transaction or event on a specific asset, liability or owners' equity item
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For the ACCOUNTING IDENTITY to hold...
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...it must be the case that for every debit entry there is a corresponding credit entry in an account
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