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Unformatted text preview: Future Value The sum to which an amount will increase as the result of compound interest. Liabilities Probable debts or obligations of the entity that result from past transactions, which will be paid with assets or services. Liquidity The ability to pay current obligations. Long-Term Liabilities All of the entity's obligations that are not classified as current liabilities. Operating Lease Does not meet any of the four criteria established by GAAP and does not cause the recording of an asset and liability. Present Value The current value of an amount to be received in the future; a future amount discounted for compound interest. Temporary Differences Timing differences that cause deferred income taxes and will reverse, or turn around, in the future. Time Value of Money Interest that is associated with the use of money over time. Working Capital The dollar difference between total current assets and total current liabilities....
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.
- Fall '07