Balance Sheet Flashcards
Balance Sheet 3 elements
Assets Liabilities Owner’s equity
Assets Accounts 5 examples
Cash/ Petty Cash/ Temporary Investments Accounts Receivable/ Equipment/ Inventory/ Prepaid Expenses/ Prepaid insurance/ Supplies/ Land/ Land improvements/ Buildings/ Goodwill
Liabilities Accounts 5 examples
Accounts Payable/ Accrued Expenses/ Notes Payable/ Unearned Revenue/ Deferred Taxes
Owner’s Equity
Contributed Capital and Retained Earnings
Retained earnings
Beginning retained earning+ Net Income - Dividends = Ending retained earnings
Net Income
Revenue - Expenses
Assets Definition
thins that a company owns and sometimes referred to as the resources of the company and account receivables
Liabilities Definition
obligations of the company; the amounts owed to others as of the balance sheet date
Stockholder’s equity VS Owner’s equity
SE is for corporations and OE is for sole proprietorship
Stockholder’s equity
=assets amounts - liabilities amounts ; the “book value” of the corporation
Contributed Capital
total value of stock that shareholders have directly purchased from issuing company. Common Stock/ Paid-in Capital in Excess of Par value-common stock/ Preferred Stock
Cost of Goods Sold
the expenses associated with the material used to produce sales. The COGS can include raw materials or merchandise removed from inventory. COGS decreases Net income
