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Elements in a Financial Statement

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Question
Answer
currnet assets + Non-current assets   Total assets  
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Items that can quickly be converted to cash or that will be sold within 12 months Examples- cash on hand, checking and savings accounts,stocks,bonds and cash in value of life insurance, money others owe you, currnet non-depreciable inventory   Current Assets  
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Items that have a useful life of more than one year and are used in the business Examples- non-current, non-depreciable inventory, land   Non-Current Assets  
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Currnet liabilities(debts) + non-current liabilities(debts)   Total Liabilities  
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Accounts and notes payable, this years part of non-current liabilities   Current liabilities  
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Mortagages and other debts not due this year   Non-current liabilities  
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Total assets minus total liabilities   Net Worth or Owners Equity  
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Total liabilities/net worth   Debt-to-Equity Ratio  
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Created by: wmhill
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