accounting study Flashcards
1
Q
how many lines are there in a financial statement
A
3
2
Q
balance sheet equation
A
Assets = Liabilities + Owner’s Equity
3
Q
what is the purpose of accounting
A
to record
4
Q
which financial statement reports a companys net income or loss
A
income statement
5
Q
acounts payable / accounts receivable
A
money owed / money owed to a business
6
Q
what financial statement shows the changes in a companys cash over time
A
balance sheet
7
Q
what is gross profit
A
revenue - COGS while net profit is gross profit
8
Q
accounting in terms of decision making
A
bookkeeping involves recording
9
Q
what does equity mean
A
the remaining stake or claim
10
Q
what is a balance sheet
A
shows a companys assets, liabilities, and equity at a specific point in time
11
Q
“snap shot”
A
balance sheet
