Accounting Flashcards
What is asset?
an asset is a future economic benefit that an organization either owns or controls.
What s leasehold improvement ?
Leasehold improvements represent the remaining cost of any structural changes that were made by the company to improve property that it was only renting and did not own. In manycases, for financing purposes and tax reasons, companies prefer to rent space—for example, in a shopping mall—rather than buy it. While renting, companies often spend significant amounts of money to adapt the facility to their own particular needs. This cost is reported as an asset
because the changes will benefit the company in the future. In accounting, this asset is
commonly known as a leasehold improvement.
What is liability?
probable future economic sacrifice or, in simple terms, a debt.
What is revenue?
measure of the inflow or increase in net assets generated by the sales made by a company.
It is a reflection of the amounts brought into the company by the sales process during a specifiedperiod of time.
What is expense?
measure of the outflow or reduction in net assets caused by the company’s attempt to
generate revenues and includes costs, such as rent expense, salary expense, and insurance expense.
What is net assets?
Net assets” is a term that reflects a company’s assets less its liabilities.
