Finance Flashcards
(17 cards)
1
Q
assets
A
a physical item of value that is owned by the business.
There are 2 types; current and noncurrent assets
2
Q
liability
A
anything owed to people or other businesses outside the business entity.
There are 2 types; current and noncurrent liabilities
3
Q
owner’s equity
A
This is also known as CAPITAL or PROPRIETORSHIP.
This is the net worth of the business and represents what the business owed to the proprietor
4
Q
Owner’s equity formula
A
A = L + OE
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