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15 Cards in this Set
- Front
- Back
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classified balance sheet
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contains a number of standard classifications and standards
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cost constraint
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determines whether the cost that the companies will inccur to provide info will outweigh benefit of users having financial statement
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cost principle
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companies should record assets at their cost
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current ratio
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evaluates companies liquidity and short term debt-paying ability
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earnings per share
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measure of net income earned on each share of common stock
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economic entity assumption
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assumption that every economic entity can be seperatly accounted for
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fair value principle
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assets and liabilities should be reported at fair value
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free cash flow
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cash remaining from operating activities after adjustment
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Current Ratio
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Current assets / current liabilities
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working capital
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current assets - current liabilities
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credit
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right side
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debit
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left side
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ledger
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group of accounts maintained by company
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trial balance
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list of accounts and their balances at a given time
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t account
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basic form of an account
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