_______ Refers to the Principles by Which Financial Statements Are

question 42

Short Answer

_______ refers to the principles by which financial statements are prepared.

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Definitions:

Accounting Records

Documentation and books kept for the purpose of tracking all financial transactions, assets, liabilities, and equity of a business.

Net Income

The amount of money left over after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

End-of-Period Spreadsheets

Tools used in accounting to compile financial information at the end of an accounting period, aiding in the preparation of financial statements.

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts due within a year, derived by dividing current assets by current liabilities.