Business: Accounting Flashcards
What are Assets?
An asset is any resource with financial value that is controlled by a company, country, or individual.
What are some examples of Assets?
Cash Accounts receivable Inventory Building Machinery Equipment Patents Copyrights
What are Expenses?
An expense in accounting refers to the money spent and the costs incurred by a company in pursuing revenue
What is Revenue?
Revenue describes income earned through the provision of a business’s primary goods or services.
What are some examples of Expenses?
An expense is a cost incurred in the process of producing or offering a primary business operation
What is a Liability?
A liability is something a person or company owes, usually a sum of money
What is Owners Equity?
Owner’s equity is defined as the amount of money invested by the owner in the business minus any money taken out by the owner of the business
What is Service Enterprise?
A Service Enterprise is an organization that uses volunteers and their skills across all levels of the organization
What is Trading Enterprise?
State trading enterprises are defined as governmental and non-governmental enterprises, including marketing boards, which deal with goods for export and/or import.
What is an Income statement?
An income statement shows a company’s revenues, expenses and profitability over a period of time.
What is a Balance sheet?
A balance sheet is a financial statement that contains details of a company’s assets or liabilities at a specific point in time.
What is the difference between and Income statement and a Balance sheet?
What is Gross Profit?
A company’s revenues minus its cost of goods sold
What is Net Profit?
Net profit is the amount of money your business earns after deducting all operating, interest, and tax expenses over a given period of time.
What are the 3 versions of accounting equation?
A = L +OE OE = A - L L = A - OE
