1. Welcome to the Accounting Flashcards Tool. This is designed as a simple supplementary resource for the textbook ‘Short Introduction to Accounting’, and aims to help students grasp the meaning of the core essential terms within the book. Each term will appear on its own, and you can then click to check the definition. Click or press [space] to begin.

2. Current liability [ click for answer ] term: 1 of 11

3. A liability that is expected to be settled by cash payment within one year. [ click for next term ] definition: 1 of 11

4. Current ratio [ click for answer ] term: 2 of 11

5. A measure of liquidity, defined as current assets/current liabilities. [ click for next term ] definition: 2 of 11

6. Debt [ click for answer ] term: 3 of 11

7. A liability, representing finance provided at a contractually agreed rate of interest. [ click for next term ] definition: 3 of 11

8. Depreciation [ click for answer ] term: 4 of 11

9. The systematic allocation of the depreciable amount of an asset over its useful life. (Depreciable amount: the cost of an asset less its residual value.) [ click for next term ] definition: 4 of 11

10. Dividend [ click for answer ] term: 5 of 11

11. A payment made by a company to its shareholders, as a distribution of profit earned by the company. [ click for next term ] definition: 5 of 11

12. Dividend yield [ click for answer ] term: 6 of 11

13. Defined as dividends per share divided by the share price; expressed as a percentage. [ click for next term ] definition: 6 of 11

14. Double-entry accounting [ click for answer ] term: 7 of 11

15. A system of record-keeping, whereby a journal entry records transactions in the form of a debit to one account and an equal credit to another. A debit entry is an increase in an asset, or a decrease in equity or in a liability; a credit entry is the opposite. [ click for next term ] definition: 7 of 11

16. EBIT, or operating profit [ click for answer ] term: 8 of 11

17. Earnings before interest and tax; a measure of profit earned by operating activity. [ click for next term ] definition: 8 of 11

18. EBITDA [ click for answer ] term: 9 of 11

19. Earnings before interest, tax, depreciation and amortisation. [ click for next term ] definition: 9 of 11

20. Enterprise value [ click for answer ] term: 10 of 11

21. The total economic value of a company, defined as the sum of shareholder value (market capitalization) and the market value of debt. [ click for next term ] definition: 10 of 11

22. eps [ click for answer ] term: 11 of 11

23. Earnings per share, defined as profit after tax/number of shares in issue; used primarily in the PE ratio. [ End of flashcard 2 ] definition: 11 of 11