Term
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Definition
| A financial statement that reports the types and the monetary amounts of a compnay's assets, liabilities, and owner's equity on a specific date. |
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Term
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Definition
| The balance sheet shows subtotals for asets, liabilities, and owner's equity in related groupings. |
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Term
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Definition
| A company's economic resources that it expects will provide future benefits to the company. |
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Term
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Definition
| Cash and other assets that the company expects to convert into cash, sell, or use up within one year. |
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Term
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Definition
| Include items such as notes receivable, government bonds, bonds and capital stock or corporations, and other securities. |
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Term
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Definition
| Includes all the pysical, long-term assets used in the operations of a company. |
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Term
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Definition
| The original cost of an asset minus the related accumulated depreciation. |
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Term
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Definition
| The total amount of depreciation expense recorded over the life of an asset to date; thus, it is the portion of the asset's cost that has been "used up" to earn revenues to date. |
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Term
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Definition
| Are the economic obligations (debts) of a company. |
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Term
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Definition
| Obligations that the company expects to pay within one year by using current assets. |
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Term
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Definition
| Obligations that a company does not expect to pay within the next year. |
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Term
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Definition
| The owner's current investment in the assets of the company. |
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Term
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Definition
| A measure of how quickly a company can convert its assets into cash to pay its bills. |
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Term
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Definition
| A company's current assets minus its current liabilities. |
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Term
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Definition
| Shows the relationship between current assets and current liabilities and is probably the most commonly used indicator of a company's short run liquidity. |
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Term
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Definition
| A more convincing indicator of a company's short-term debt-paying ability. |
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Term
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Definition
| The ability of a company to adapt to change. |
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Term
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Definition
| Shows the percentage of total assets provided by creditors and is calculated as follows. |
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Term
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Definition
| The amount of net income earned compared with total assets which shows whether a company used its economic resources efficiently. |
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Term
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Definition
| Shows the number of times the company turns over (or sells) the inventory during that period. |
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Term
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Definition
| Refers to a company's ability to sustain a given level of operations. |
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Term
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Definition
| Shows the number of times the company turns over (or sells) the inventory during that period. |
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Term
| Number of Days in the Selling Period |
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Definition
| How long it takes a company to sell its inventory. |
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Term
| Accounts Receivable Turnover |
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Definition
| Shows how many times the average receivable turns over (is collected) each period. |
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Term
| Number of Days in the Collection Period |
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Definition
| The average time it takes the company to collect its accounts receivable. |
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