Basic Accounting Flashcards
The amount of money owed by your customers after goods or services have been delivered and/or used.
Accounts Receivable – AR
A systematic way of recording and reporting financial transactions.
Accounting – ACCG
The money owed by a business to its suppliers shown as a liability on a company’s balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.
Accounts Payable – AP
_____ will be used within one year. Typically this could be cash, inventory or accounts receivable.
_____ are more long-term and will likely provide benefits to a company for more than one year, such as a building, land or machinery.
Assets (Fixed and Current) – FA and CA
A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the income and expenditure over the preceding period.
Balance Sheet – BS
____ is a financial asset and its value, such as cash or goods.
_____ is calculated by taking your current assets subtracted from current liabilities.
Capital – CAP
Working Capital
The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time.
Cash Flow – CF
A designation given to someone who has passed a standardized exam and met government-mandated work experience and educational requirements.
Certified Public Accountant – CPA
The direct expense related to producing the goods sold by a company. This may include the raw materials (parts) and amount of employee labor used in production.
Cost of Goods Sold – COGS
An accounting entry that may either decrease assets or increase liabilities and equity on the company’s balance sheet, depending on the transaction. When using the double-entry accounting method there will be two recorded entries for every transaction: a credit and a debit.
Credit – CR
An accounting entry where there is either an increase in assets or a decrease in liabilities on a company’s balance sheet.
Debit – DR
The four types of expense that a business may incur through its operations.
Expenses (Fixed, Variable, Accrued, Operation) – FE, VE, AE, OE
A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. Following these rules is especially critical for all publicly traded companies.
Generally Accepted Accounting Principles – GAAP
A complete record of the financial transactions over the life of a company.
General Ledger – GL
A company’s debts or financial obligations it incurred during business operations.
_____ are those debts that are payable within a year, such as a debt to suppliers.
_____ are typically payable over a period of time greater than one year.
Liabilities (Current and Long-Term) – CL and LTL
