| No. | English | Farsi | Pashto | Subject |
|---|---|---|---|---|
| 556 | liquidity: the ability of a company to pay its short-term obligations when they come due. | - | - | Accounting |
| 557 | intangible assets: assets that have no physical existence, but arise from the rights and privileges inherent in ownership (e.g. patents, trademarks, franchises). | - | - | Accounting |
| 558 | income summary: a temporary account used to summarize revenues and expenses prior to transferring the resulting profit/loss to the Equity account. | - | - | Accounting |
| 559 | goodwill: an intangible asset that is recognized only when a company is acquired by another company. Represents the difference between the amount paid and the fair value of the net assets purchased. | - | - | Accounting |
| 560 | current ratio: measures a company's ability to pay its current liabilities; a measure of short-term liquidity. Current ratio = current assets divided by current liabilities. | - | - | Accounting |
| 561 | normal credit balance: with liabilities and owner's equity being on the right side of the accounting equation, they have a credit (right-side) balance, meaning that credits will increase and debits will decrease the balance. Because revenues increase owner's equity, they have a normal credit balance as well. Assets = Liabilities + Owner's Equity | - | - | Accounting |
| 562 | normal debit balance: with assets being on the left side of the accounting equation, assets would generally have a debit (left-side) balance, meaning that debits will increase and credits will decrease the balance. Assets = Liabilities + Owner's Equity | - | - | Accounting |
| 563 | current liabilities: obligations to provide cash or other economic resources or services that are due within one year or a company's normal operating cycle. | - | - | Accounting |
| 564 | current assets: cash and other liquid assets (e.g. accounts receivable, inventory, prepaid expenses) that will be used up and/or converted to cash within one year or the company's normal operating cycle. | - | - | Accounting |
| 565 | correcting entries: journal entries that are recorded to correct any errors made during the original recording process. | - | - | Accounting |
| 566 | closing entries: journal entries made at the end of an accounting period to transfer revenues and expenses to the Income Summary account, and then to transfer the Income Summary account and drawings to the Equity account. | - | - | Accounting |
| 567 | acid-test ratio: measures a company's short-term liquidity; it shows how well quick assets can cover current liabilities. Acid-test ratio = (Cash + short-term investments + accounts receivable) divided by current liabilities. | - | - | Accounting |
| 568 | steps in the accounting cycle: (1) analyze business transactions; (2) journalize the transactions; (3) post to the ledger accounts; (4) prepare a trial balance; (5) journalize and post adjusting entries; (6) prepare an adjusted trial balance; (7) prepare financial statements; (8) journalize and post closing entries; (9) prepare a post-closing trial balance. | - | - | Accounting |
| 569 | useful life: an estimated number of years an asset is expected to provide economic usefulness to a business. | - | - | Accounting |
| 570 | straight-line depreciation method: a method where depreciation expense is spread equally over the useful life of an asset; annual depreciation expense = original cost of the asset divided by the number of years of useful life. | - | - | Accounting |