final study guide Flashcards
1
Q
What is the accounting equation?
A
assets = liabilities + stockholders equity
2
Q
How can you manipulate the accounting equation?
A
assets = liabilites + contributed capital + retained earnings
3
Q
Which financial statement is for a specific date (specific point in time)?
A
Balance sheet
4
Q
What is the definition of a current asset
A
Consists of cash and other assets that are reasonably expected to be converted into cash within one year or one operating cycle, whichever is longer.
5
Q
Where is current assets listed?
A
Balance Sheet
6
Q
What is the definition of current liabilities?
A
Consists of obligations that will be satisfied, through the payment of cash or by providing goods or services within one year or operating cycle, whichever is longer.
