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#1
Q: Accounting equation?
A: Assets = Liabilities + Equity
#2
Q: What is a balance sheet?
A: A snapshot of a company's assets, liabilities and shareholders' equity at a point in time.
#3
Q: What is net income?
A: Revenue − Expenses (including taxes and interest).
#4
Q: What does debit mean?
A: An entry on the left side of a ledger account; increases assets and expenses.
#5
Q: What is the current ratio?
A: Current Assets / Current Liabilities — measures short-term liquidity.
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