Balance Sheet Flashcards
1
Q
Assets are equal to
A
Liabilities + Owners Equity
2
Q
Owners Equity also known as
A
Net ownership interest
3
Q
Obligations also known as
A
Liabilities
4
Q
Assets also known as
A
company resources
5
Q
Assets are in order of
A
liquidity
6
Q
Liabilities are in order of
A
Paid soon to items paid later
7
Q
What does it mean when the debt ratio is above 100%
A
The total liabilities are more than total assets.
8
Q
Income statement
A
Revenues - Expenses and show the big gains or losses.
9
Q
Statement of Cashflows
A
Operating, investing, and financing activities
10
Q
Investing activities
A
Purchase and sale of long-term assets such as land and equipment
11
Q
Measurements of Income
A
Gross Profit/ Operating income/income from continuing operations/net income /comprehensive income
