Balance sheets Flashcards
1
Q
what is the balance sheet equation?
A
assets - liabilities = owners equity
2
Q
what is a balance sheet?
A
a financial statement which shows the financial position of a business at a specific time
3
Q
what is the order of short term assets on a balance sheet?
A
in order of liquidity (how easy it is to turn to cash)
4
Q
what is the order of long term assets on a balance sheet?
A
in order of permanency (how long lasting they are)
5
Q
what is the order of liabilities on a balance sheet?
A
listed by the maturity date (the date that debt is due to be paid)
