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
