Accounting Flashcards
Liabilities
Firms debt and obligations
Assets
The resources that a business owns
Owners equity
The difference between the firms assets and it’s liability
Formula for owners equity?
OE= A-L
Double entry bookkeeping system
A system in which each financial transaction is recorded as two separate accounting entries to maintain the balance shown in the accounting equation
Annual report
A report distributed to stockholders and other interested parties that describes a friend operating activities in this financial condition
Trial balance
Summary of the balances of all general ledger accounts at the end of the accounting.
Formula for asset?
A=L+OE
what should your total liabilities and owners equity equal?
Assets
Fixed asset
Assets that will be held or used for. Longer than one year
Deappreciation
The process of apportioning the cost of a fixed asset over the period during which it will be used
Intangible assets
Assets of that do not exist physically but that have a value based on the rights or privileges they confirmed on a firm
Current liabilities
Debts that will be repaid in one year or less
Long-term liabilities
That’s the need not be repaid for at least one year
Retained earnings
The portion of the business profits not distributed to stockholders
Income statement
A summary of the firms revenues and expenses doing a specified accounting period
Revenue
The dollar amount of money by a friend from selling goods providing service Or performing business activity
Where would you find the total amount of assets liabilities and owners equity for Hershey Foods Corporation?
The firms balance sheet
Gross sale
The total dollar amount of all goods and services sold during the accounting period
What is the formula for cost of goods sold?
Beginning inventory + net purchases - ending inventory
Net sale
The actual dollar amounts received by firm for the good and services it has sold after adjustment for returns allowances and discounts
Cost of goods sold
The dollar amount equal to beginning inventory plus the net expenses less ending inventory
Gross profit
Firms net sales less the cost of goods sold
Operating expenses
All business calls other than the cost of goods sold
