Chapter 4 Vocab 1) Classified Balance Sheet: A balance sheet that contains standard classifications or sections. 2) Closing Entries: Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders’ equity account, retained earnings. 3) Correcting Entries: Entries to correct errors made in recording transactions. 4) Current Assets: Assets that a company expects to convert to cash or use up within one year (or operating cycle, whichever is longer). 5) Current Liabilities: Obligations that a company expects to pay from existing current assets within the coming year. 6) Income Summary: A temporary account used in closing revenue and expense accounts. 7) Intangible Assets: Noncurrent assets that do not have physical substance. 8) Liquidity: The ability of a company to pay obligation expected to be due within the next year. 9) Long Term Investments: Generally, (1) investments in stocks and bonds of other
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This note was uploaded on 11/14/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.