Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
Accounting 2600 Week 9 Professor Scott Becker Current Assets - Cash, Inventory, accounts receivable, prepaid assets Current Liabilities - obligations that will be satisfied, through payment, within ONE YEAR Long-term Liabilities - LONGER THAN ONE YEAR Notes payable, bonds payable Stockholders’ Equity: Contributed Capital - owners contributions of cash and other assets to the company. Retained earnings - the accumulated net income of a company that has not been distributed to owners in the forms of dividends. Liquidity= Can you pay your bills Working Capital= Current Assets - Current Liabilities Current Ratio= Current assets / current liabilities ● Less than one is bad, liquidity issue ● Greater than one is good ● Banks like 2 or higher **Income
