FA Chapter 3 Flashcards
1
Q
Transaction
A
An exchange between an entity and other parties
2
Q
Note Payable
A
amounts owed from customers
3
Q
Elements on the Income Statement
A
Revenues
Expenses
Gains
Losses
4
Q
Earnings Per Share=
A
Net Income/Shares
5
Q
Recognize Revenue when
A
Delivery has occurred or services have been rendered
6
Q
If cash is received before the company delivers goods or services, the liability account_______is recorded
A
Unearned Revenue
7
Q
Revenue will affect Retained Earnings
A
Credit or Increase
8
Q
Expense will affect Retained Earnings
A
Debit or decrease
9
Q
Statement of Retained Earnings=
A
Statement of Stockholders’ Equity
