Term
| What is the balance sheet? |
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Definition
| A position statement that presents an organized list of assets, liabilities and equity at a particular point in time. |
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Term
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Definition
| Assets minus liabilities as shown in the balance sheet. |
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Term
| What is an operating cycle? |
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Definition
| Period of time necessary to convert cash to raw materials, raw materials to finished product, the finished product to receivables, and then finally receivables back to cash. |
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Term
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Definition
| Includes cash and all other assets expected to become cash or be consumed with in one year or the opration cycle, whichever is longer. |
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Term
| What is a cash equilvalent? |
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Definition
| They are highly liquid investments that can be quickly converted into cash with little risk of loss. |
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Term
| What are short-term investments? |
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Definition
| Investments not classified as cash equivalents that will be liquidated in the coming year or operating cycle, whichever is longer. |
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Term
| What is accounts receivable? |
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Definition
| Receivables resulting from the sale of goods or services on account. |
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Term
| What are notes receivable? |
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Definition
| Receivables supported by a formal agreement or note that specifies payment terms. |
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Term
| What are prepaid expenses? |
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Definition
| Represents an asset recordede when an expense is paid in advance, created benefits beyond the current period. |
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Term
| What is property, plant and equipment? |
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Definition
| Land, buildings, equipemtn, machinery, autos and trucks. |
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Term
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Definition
| Goods awaiting sale (finished goods), goods in the course of production (work in process) and goods to be consumed directly or indirectly in production (raw materials). |
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Term
| What are intangible assets? |
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Definition
| Operational assets that lack physical substance: examples include patents, copyrights, franchises and goodwill. |
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Term
| What is an operation asset? |
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Definition
| Property, plant and equipment, along with intangible assets. |
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Term
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Definition
| A catch-all classification of noncurrent assets on the balance sheet. |
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Term
| What are accounts payable? |
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Definition
| Obligations to suppliers of merchandise or of services purchased on open account. |
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Term
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Definition
| A promissory note (essentially an IOU) that obligates teh issuing corporation to repay a stated amount at or by a specified maturity date and to pay interest to the lenderbetween the issue date and maturity. |
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Term
| What are unearned revenues? |
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Definition
| Cash received from a customer in one period for goods or services that are to be provided in a future period. |
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Term
| What are accrued liabilities? |
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Definition
| Expenses already incurred but not yet paid (accrued expenses). |
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Term
| What are current maturities of long-term debt? |
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Definition
| The current installment due on long-term debt, reported as a current liability. |
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Term
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Definition
| Invested capital consisting primarily of amounts invested by shareholders when they purchase shares of stock from the corporation. |
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Term
| What are retained earnings? |
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Definition
| Amounts earned by the corporation on behalf of its shareholders and note (yet) distributed to them as dividends. |
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