Balance Sheet Flashcards
1
Q
What is retained earning?
A
RE is the company’s undistributed earnings. RE=Beg, RE +/-prior year adjustment+net income-dividend distribution
2
Q
What is working capital?
A
Working capital is company’s current asset minus current liability.
3
Q
What is current assent?
A
Asset is classified as current if the asset is expected to be realized in cash or consume/sold within the operating cycle or one year, which is longer.
