Ch1 Acc Flashcards
balance sheet
A list of the assets, liabilities, and stockholders’ equity as of a specific date,
statement of cash flows
A summary of the cash receipts (cash bussines receives in any way) and cash payments for a specific period of time, such as a month or a year.
The business entity assumption is important because
it limits economic data in financial reports to the data directly related to the activities of the business.
The amounts needed to calculate the ratio of liabilities to stockholders’ equity can be found on
balance sheet
GAAP does not
does not allow a company’s management to record and report data as it sees fit. It is principles and assumptions that the management of a company uses to report its financial information
statement of stockholders’ equity
changes in the stockholders’ equity in a corporation that have occurred during a period. Includes: net income (loss), common stock, and dividends.
Sales
Money earned by a business from selling goods or services to its customers represents:
mangerial accounting
provides internal users (managers, employees) with information
buy “on account”
owe money for that product
retained earnings
Portion of net earnings not distributed to stockholders as dividend . Net income retained in a corporation.
stockholders equity
Whats left over after paying liabilities, represents the value that would be returned if company would liquidate. Represents their right to the assets of the business.
