KEY TERMINOLOGY Flashcards
1
Q
LIQUIDITY
A
the ability of the business to meet its short term debts as they fall due.
2
Q
ETHICAL CONSIDERATIONS
A
the social and economic consequences of a financial decision
3
Q
PURPOSE OF ACCOUNTING
A
to provide financial information and advice to assist decision making
4
Q
DOUBLE ENTRY ACCOUNTING
A
a system that records at least two effects on the accounting equation as a result of each transaction
5
Q
A
