Assets Vs. Liabilites and the Balance Sheet Flashcards
1
Q
Term: Goods kept in stock- available for sale
A
Inventory
2
Q
Term: Amounts due from customers for goods or services that have been delivered
A
Accounts Receivable
3
Q
Liability: Amounts due to suppliers for goods or services
A
Accounts Payable
4
Q
Liability: Contractual obligations due to lenders
A
Notes Payable
5
Q
What are”Common Stocks”
A
Amounts invested by the owners of the company
6
Q
What is a “retained earning”
A
The sum of all net income over the life of a business
7
Q
What type of asset is expected to be converted into cash within 12 months?
A
Current Asset
8
Q
3 types of current assets
A
Accounts Receivable, Cash, Inventory
9
Q
When reviewing a balance sheet- an increase of what would be concerning?
A
Accounts Receivable
10
Q
What is the format for a balance sheet?
A
Liabilities + Equity= Assets
