Business - Marketing ACC120 Chapter Notes -Current Liability, Capital Account, Working Capital
14 Feb 2014
School
Department
Professor
Document Summary
Acid-test ratio: a measure of the company"s immediate short-term liquidity. Classifies balance sheet: a balance sheet that has sever classifications or sections. Closing entries: entries made at the end of an accounting period to transfer the balances of temporary accounts (revenue, expenses, income summary, and drawings) to the permanent owner"s equity account, owner"s capital. Closing the books: the process of journalizing and posting closing entries to update the capital account and prepare the temporary accounts for the next period"s postings. Correcting entries: entries to correct errors that were made when transactions were recorded. Current assets: cash and other assets that will be converted to cash, sold, or used up within one year from the balance sheet date or in the company"s normal operating cycle. Current liabilities: obligations that are expected to be settled within one year from the balance sheet date or in the company"s normal operating cycle.
