Balance Sheet, Income Statement and Stockholders' Equity Flashcards
What is the accounting equation?
assets = liabilities + equity
The accounting equation is the foundation for what financial statement?
balance sheet
How do you calculate net income?
revenue - expenses = net income
The net income equation is the foundation for what financial statement?
income statement
What are the two main umbrella categories for statement of stockholders’ equity?
contributed capital and retained earnings
What are the three types of cash flows included on the statement of cash flows?
operating cash flow, investing cash flow and financing cash flow (IN THAT ORDER!)
Which statement(s) is/are taken over a period of time?
cash flows, income statement and stockholders’ equity
Which statement(s) is/are taken at a point in time?
the balance sheet
cash goes in the __________ category
asset
accounts receivable goes in the __________ category
asset
inventories goes in the __________ category
asset
land goes in the __________ category
asset
equipment goes in the __________ category
asset
investments goes in the __________ category
asset
accounts payable goes in the __________ category
liabilities
salaries payable goes in the __________ category
liabilities
taxes payable goes in the __________ category
liabilities
unearned / deferred revenue goes in the __________ category
liabilities
notes payable goes in the __________ category
liabilities
long-term debt goes in the __________ category
liabilities
when something is paid for “on account,” it goes in the __________ category
liabilities