the balance sheet shows firms assets and claims against those. in other words, assets are equal to libilities and equity. assests are shown in order of their ______( balances, liquidity or importance) and claims are listed in the order of when they must be paid out.

current assests include cash and their equivalents, accounts _______(payable, receivable, accrual) and inventory, while long term assesfs are those whose useful lives exceed one year.

liabilities are divided into _____(current assets, notes payable, current liabilities) and long term debt.

a companys total debt includes both its short term ans long term ______(noninterest-bearing or interest-bearing) liabilities.

total liabilities equal _____(current liabilities, total debt, total equity) plus the company is "free" liabilities.

______( net working capital, net fixed assets or net current liabilities) is the difference between current liabilities and notes payable.

_______(net income, operating income, net worth) is a capital supplied by common stockhders and represents ownership.

comapnies operating performances can be compared by looking at each firms EBIT often referred to as _____(operating income, net income, total income).

a typical stockholder focuses on the bottom line of the income statement, _____(dividends per share, earnings per share, price per share)

the income statement is tied to the _____(cash flow statement, cash budget, balance sheet) through the retained earnings account.

net income minus _____(depreciation, interests, dividends) paid is equal to the retained earnings for the year and this amount is added to the cummulative retained earnings from prior years to obtain the year end retained earning balance.

the value of any asset, including a share of stock is based ____(net income, cash flows, operating income) the assetis expected to produce.

therefore managers strive to maximize the _____(operating income, net income, cash flows) available to investors.

the statement to cash flows shows how much (income, cash, debt) a firm is generating.

changes in stockholders equity can come from new stock issues, stock purchases, net income, and ______(dividends, interests, depreciation)