Academic Wiki

Business Transactions

Only resources and debts resulting from past transactions are recorded on the balance sheet.  Trademarks and copyrights developed internally are not counted.

·        External events

·        Internal events

Formulas

1. Current ratio

2. Financial Leverage Ratio

Vocabulary Terms

1. Separate-entity assumption 
2. Unit-of-measure assumption
3. Continuity assumption
4. Assets
5. Current assets
6. Liabilities
7. Current liabilities
8. Historical cost principle
9. Duality of Effects