ACCTG 219 termonology Flashcards
What is a balance sheet
statement of financial position at a single point in time
what is the balance sheet formula
Assets = Liabilities + Stockholder Equity
What is an income statement
revenues and expenses over a period of time (such as one year)
What is a statement of cash flow
explains change in cash over a period of time (such as one year)
what is a statement of stockholder’s equity
explains change in SE over a period of time (such as one year)
What is an asset
anything which will provide future benefit to the company
what short-term assets are on the balance sheet
cash, accounts receivable, inventory, equipment/land/property, prepaid expenses and current assets
What is cash
money in the bank - checking and savings accounts
What is accounts receivable
when a sale is made, but the customer hasn’t paid yet
What is inventory
items intended for resale to customers
What is equipment/land/property
long-term assets such as computers, buildings, etc. - not intended for resale to customers
What are prepaid expenses and current assets
things like paying rent for future months and cash & other short-term assets expected to be converted into cash within 1 year
what are liabilities
debts - anything that the company owes
what liabilities are on the balance sheet
accounts payable, wages payable, current liabilities, and long term liabilities
What are accounts payable
when a company buys a good or service from a supplier but has yet to pay the bill
What are wages payable
when employees work and earn the right to receive pay, but wages not yet actually paid
What are current liabilities
debts which are owed in 1 year or less
What are long term liabilities
debts which are owed in more than 1 year
what is stockholder’s equity
the residual difference between assets vs liabilities
what does stockholder’s equity consist of on the balance sheet
common stock and retained earnings
What is common stock
how corporations raise money via an Initial Public Offering (IPO)
