Accounting 1-23 - Accrual Revenue Expenses Difference is Net Income(NI Income Statement Depreciation is the allocation or the adjusting entry to

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Quick assets can be converted to cash in 30 days or less. Accounts Receivable Short term-investments Cash Quick ratio is the quick assets divided by current liabilities. Current ratio is current assets divided by current liabilities. Current assets - current liabilities = working credit Chapter Four Cash basis vs accrual basis Cash Cash rec’d (+) Cash paid (-) Difference is Net Cash Flows (NCF) Measures activity of cash, can be pos or neg Statement of Cash Flows
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Unformatted text preview: Accrual Revenue (+) Expenses (-) Difference is Net Income (NI) Income Statement Depreciation is the allocation, or the adjusting entry to record a deferral. Has nothing to do with market value. Chapter 4 Controls are important because they can confirm accounting accuracy. Internal auditing can also take place to ensure accuracy before problems arise. Closing of the accounts is the accounting cycle....
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This note was uploaded on 06/08/2008 for the course BA 212 taught by Professor Krislen-adams during the Spring '08 term at Linn Benton Community College.

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