Financial Accounting - CLEP (All chapters) | 204 Questions and Answers with complete solution

Assets - 2. Economic resources that the business plans to use in the future to make money. Balance sheet - 2. The financial report that shows business assets, liabilities, and owner's equity as of a particular day. Balanced books - 2. When "Where did it go?" equals "Where did it come from?" or when a company's assets equal its liabilities plus owner's equity. Capital - 2. Assets that help a business or a person make money. Capitalized - 2. When money is changed into another asset that helps the business make money. Creditors - 2. Outsiders to whom the company owes money. Current assets - 2. Assets that can be used to pay current liabilities. Current liabilities - 2. Debts that must be paid within one year or one operating cycle, whichever is longer. Financial accounting - 2. The skill of producing financial statements from business transactions. Fiscal year - 2. The 12-month period a business uses to report the results of its operations. Liabilities - 2. Debts owed to people outside the company. Liquid - 2. The easier it is to change an asset into cash, the more ______ that asset is.