Accelerator Class Flashcards
1
Q
What is investing?
A
,
2
Q
Do dividends and interest affect the composition of investing activities
A
No - in most countries they are classified as operating activities
3
Q
What does a balance sheet show?
A
The cumulative statement of a company since the start of the company at any given point in time (balance date).
4
Q
What is the difference between shareholder equity and liability ?
A
.
5
Q
True or false : the balance sheet is also known as the stock sheet.
A
True
6
Q
What is the capitalising?
A
When a company uses cash for a cost, that is converted into another asset. Example - buying a truck.
7
Q
What is debt classified as on a balance sheet?
A
Typically in most countries companies will classify interest payments as OPERATING activities.
