C213 Accounting for Decision Makers Competency: Financial Analysis Topic 2: Overview of Financial Statements Topic: Balance Sheet

Definitions

1. Assets- Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events.
2. Liabilities- The future sacrifices of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events.
3. Owners Equity- Portion of the assets that the owners of the organization can really call their own.
4. Liquidity- A companys ability to pay its debts in the short run.
5. Retained Earnings- The cumulative amount of a corporations profits that have been reinvested on behalf of the stockholders.
6. Classified...