Chapter 2 Flashcards
Cash
Current Asset
Supplies
Current Asset
Accounts Receivable
Current Asset
Inventory
Current Asset
Prepaids
Current Asset
What is a Current Asset?
Resources that will be used up or converted to cash within a YEAR
Equipment
Long term asset
Machinery
Long Term Asset
Furniture
Long Term Asset
Buildings
Long Term Asset
Land
Long Term Asset
Leases
Long Term Asset
What are Long Term Assets?
Resources that will benefit the company LONGER THAN a year
Accounts Payable
Current Liabilities
Short-Term Notes Payable
Current Liability
Deferred Revenues
Current Liabilities
What is a Current Liability?
Amounts owed within the next year
Notes Payable
Noncurrent Liability
Income Taxes Payable
Current Liability
Salaries Payable
Current Liability
Mortage Payable
Noncurrent Liability
Utilities Payable
Current Payable
Bonds Payable
Noncurrent Liability
What are Noncurrent Liabilities?
Amounts owed BEYOND a year
What is the equation for Gross Profits?
Revenues - Cost of Goods Sold = Gross Profit
What type of activities are reported on a statement of Cash Flows?
Investing, Operating, and Financing
