Summarizes the amounts and causes to changes in retained earnings Owners claim to assets A business owned by one person 21 Use of the same accounting principles from year to year Assets expected to be converted to cash in an operating cycle or less. The ability of a company to pay its obligations due within a year or less Assets with relatively long useful lives that are used in operating a business The quality of information that indicates th information makes a difference in a decisior Assets that do not have physical substance Information that is available to decision makers before it loses its capacity to influence decisions. Current Assets - Current Liabilities= Obligations that a company expects to pay