Unit 2 — Balance Sheet & Liquidity

0.0(0)
Studied by 0 people
call kaiCall Kai
Locked
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/11

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 3:37 PM on 8/25/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai
Chat

No analytics yet

Send a link to your students to track their progress

12 Terms

1
New cards

Liquidity

The ability to convert an asset into cash quickly without a significant loss in value.

2
New cards

⭐Accounting Equation

Assets = Liabilities + Stockholders' Equity

3
New cards

Net Working Capital (NWC)

Current Assets − Current Liabilities.

4
New cards

Positive Net Working Capital

Occurs when current assets exceed current liabilities. It is usually positive in a healthy firm.

5
New cards

⭐Total Assets Formula

Assets = Current Assets + Net Fixed Assets (CA + NFA).

6
New cards

Total Liabilities Formula

Liabilities = Current Liabilities + Long-Term Debt (CL + LTD).

7
New cards

⭐Net Working Capital Formula

NWC = Current Assets − Current Liabilities (CA − CL).

8
New cards

CA

Current Assets.

9
New cards

NFA

Net Fixed Assets.

10
New cards

CL

Current Liabilities.

11
New cards

LTD

Long-Term Debt.

12
New cards

NWC

Net Working Capital.