4/25/2021 HCM final ch 12 Flashcards | Quizlet

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HCM final ch 12
Terms in this set (24)

Presents a snapshot of a business assets and

Balance sheet
financing at a given point in time

The resources of an organization and the claims

The balance sheet lists
against those resources

The relationship between balance sheet accounts

Basic accounting
that requires the balance sheet to balance. Total
equation
assets must equal liabilities plus equity

Cash and other assets that are expected to be

Current assets
converted into cash within one accounting period

Securities that are held in lieu of cash. Typically very

Short term investments safe short term securities with maturities greater
than 90 days but less than 1 year

Cash and cash The first current asset account listed on a business's
equivalents make up balance sheet

A current asset created when a service is

Accounts receivable
performed but payment has not yet been received

Security such as stock or bond that gives the holder

Financial asset
a claim against the issuing business's cash flows

HCM final ch 12
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4/25/2021 HCM final ch 12 Flashcards | Quizlet

Property and equipment such as land, buildings,

Real asset
and machines, used to create a business's cash flows

Property and equipment. Cannot be easily bought

Fixed assets
or sold

The total amount of depreciation expenses over

accumulated
time against the fixed assets listed on the balance
depreciation
sheet

Reports the historical cost of a business's property

Gross fixed assets
and equipment

Reports the current accounting value of a business's

Net fixed assets
property and equipment

Capital The funds used to finance a business

Liabilities represent Financing

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