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13 Cards in this Set
- Front
- Back
Current Assets
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Assets that companies expect to convert cash or use up within one year or the operating cycle, whichever is longer
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Current Liabilities
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Obligatetions that a company expects to pay within the next year or operating cycle, whichever is longe.r
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Earning Per Share (EPS)
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A measure of the net income on each share of common stock; computed as net income minus preferred dividends divided by the average number of common share outstanding during the year.
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Full Disclosure Principle
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Accounting principle that dicates the companies disclose circumstance and events that make a difference to financial statement users.
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Going Concern Assumption
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The Assumption that the company will continue in operation for the forseenable future
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Historical Cost Priniple
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An accounting principle that states that companies should record assets at their cost.
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Intangible Assets
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Assets that do not have physical subatance
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Liquidity
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The ability of a company to pay obligations that are expected to become due within the next year or operating cycle.
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Long-Term Investments
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Generally, 1. investmentss in stocks and bonds of other corporations that companies hold for more then one year; 2. Long-term assets, such as land and buildings, not currently being used in the company's operations; and 3. Long-term notes receivable
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Long-Term Liabilities
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Obligations that a company expecred to pay after one year.
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Monetary unit Assumption
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An assumption that require that only those things that can be expressed in money are included in the accounting records.
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Periodicity Assumption
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An Assumption that the life of a business can be divided into artificial time period and that useful reports converting those periods can be prepared for the business
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Property, Plant, and Equipment
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Assets with relatively long useful lives that are currently used in operating the business.
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