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Quizlet was founded in October 2005 by Andrew Sutherland, who at the time was a 15-year old student, [2] and released to the public in January 2007. [3] Quizlet's primary products include digital flash cards, matching games, practice electronic assessments, and live quizzes. In 2017, 1 in 2 high school students used Quizlet. [4]
The accounting equation relates assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity. The accounting equation is the mathematical structure of the balance sheet. Probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board (IASB). The following is a ...
The classification of liabilities also plays a role in determining financial ratios, such as the current ratio—calculated as current assets divided by current liabilities. A higher current ratio indicates that the business has sufficient current assets to cover its obligations over the coming year, suggesting stronger liquidity. [ 1 ]
The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities. [4] Another way to look at the balance sheet equation is that total assets equals liabilities plus owner's equity.
When profits are low, the company reduces the liability (the reserve) rather than recording an expense in the lean year. The United States Securities and Exchange Commission (SEC) does not permit cookie jar accounting by public companies because it can mislead investors regarding a company's financial performance. [1]
Equity: The residual interest in the assets of the entity after deducting all its liabilities. Income: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity. However, it does not include the contributions made by the equity ...
The clean surplus accounting method provides elements of a forecasting model that yields price as a function of earnings, expected returns, and change in book value. [1] [2] [3] The theory's primary use is to estimate the value of a company's shares (instead of discounted dividend/cash flow approaches).
Legislation solves the problems of liability and responsibilities of cost. Once the conditions for providing assistance to a requesting state have been set, the terms constitute a legally binding contractual agreement that makes affected states responsible for reimbursement.