Accounting Flashcards
The financial statement that shows how much the business has made or lost over a period of time
Income Statement
The financial statement that shows the worth of a business on a specific date
Balance sheet
On a financial statement the title is made up of three lines.
What are the 3 “W” words to remember
Who
What
When
A.) On a balance sheet, what are the items of value called
B.) On what side are they listed, left or right?
C.) In what order are they listed?
A.) Assets
B.) Left
C.) Liquidity (how quickly they can be turned into cash
A.) On a balance sheet, money owed to us as listed under what sub category?
B.) Under what main category are they placed
A.) Accounts Receivable
B.) Under Assets
A.) On a balance sheet what is the term for the things we pay for
B.) on what side are they listed
C.) in what order are they listed?
A.) Liabilities
B.) The right
C.) listed in order due/ the maturity date
A.) on a balance sheet money we owe to other companies is listed under what sub category?
B.) under what category are they listed
A.) Accounts payable
B.) liabilities
A.) On a balance sheet what is the value of the business called?
B.) What is the formula to calculate it?
A.) Owner’s Equity
B.) Assets - Liabilities = Owner’s Equity
Yes or No
A balance sheet shows how much the business is worth
YES
Yes or No
An example of how the date would appear on a balance sheet is
March 31, 2016
YES
A.) On an income statement, what is money coming into the business called?
B.) are these items listed first or second?
C.) in what order are they listed?
A.) Revenue
B.) Listed first
C.) in order from highest to lowest amount
A.) On an income statement what is money we pay called?
B.) Are these listed first or second?
C.) in what order are they listed
A.) Expenses
B.) Listed second
C.) Listed in alphabetical order
On an income statement what does the very last line say? it shows how much the business has made or lost over the time period
Net Income
Yes or No
Income statement shows how much the business is worth
NO
On a financial statement what does it mean if a number has brackets around it
Means it is a negative number
