accounting cycleThe procedures needed to process transactions through an accounting system; including journalization, posting, adjusting, and preparing financial statements
capital stockA non-specific reference to the ownership interests of shareholders in a corporation
closing processThe process by which temporary accounts are "zeroed" out and the effects transferred to retained earnings
current assetsAssets that will be converted into cash or consumed within one year or the operating cycle, whichever is longer
current liabilitiesObligations that will be liquidated within one year or the operating cycle, whichever is longer
current ratioA measure of liquidity, calculated by dividing current assets by current liabilities
full disclosure principleAll relevant facts that would influence investors' and creditors' judgments about the company are disclosed in the financial statements or related notes
income summaryA non-financial statement account used only to facilitate the closing process by summarizing and zeroing-out the revenue and expense accounts
intangible assetLack physical existence, and include items like purchased patents and copyrights
liquidityThe ability of a firm to meet its near-term obligations as they come due
long-term investmentsInvestments made for long-term holding purposes; including land for speculation, securities of other companies, etc.
long-term liabilitiesAny obligation that is not current, and include bank loans, mortgage notes, and the like
nominal accountsAccounts that will be reset to a zero balance with each new accounting period; revenue, expense, and dividend accounts (also called "temporary" accounts)
operating cycleThe period of time it takes to convert cash back into cash (i.e., purchase inventory, sell the inventory on account, and collect the receivable)
other assetsThe category of a classified balance sheet for reporting assets that are not logically attached to one of the other specific sections
post-closing trial balanceReveals the balance of accounts after the closing process, and consists of balance sheet accounts only
property, plant, and equipmentAssets with long lives that will be used in an entity's production processes; land, buildings, and equipment
quick ratioAn extreme measure of liquidity, calculated by dividing quick assets (cash, short-term investments, and accounts receivable) by current liabilities
real accountsAsset, liability, and equity accounts; balances are carried forward from the end of one period into the beginning of the next period
retained earningsThe excess of a corporation's income over its dividends
reversing entryOptional accounting procedure which may prove useful in simplifying record keeping; a journal entry to "undo" an adjusting entry
temporary accountsAccounts that will be reset to a zero balance with each new accounting period; revenue, expense, and dividend accounts (also called "nominal" accounts)
working capitalThe difference between current assets and current liabilities
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