Financial Accounting Foundations Flashcards
Loans, owner investments and retained profits are sources of _______.
Assets
This statement is also known as a P&L (profit & loss) statement or a statement of operations.
Income Statement
The difference between revenue and expenses is called _______.
Net Income(Loss)
Type of cashflow that involves everyday transactions.
Operating Cashflows
Type of cashflow involving investments in the productive capacity of the business.
Investing Cashflows
Type of cashflow that involves getting money to repay loans and pay dividends.
Financing Cashflows
A key metric in cost analysis; this term refers to the direct costs attributable to producing a good or service. Term typically used by retailers.
Cost of Sales (Cost of Revenue)
A key metric in cost analysis; this term refers to the direct costs attributable to producing a good or service. Term typically used by manufacturers.
Cost of Goods Sold (COGS)
Cost of sales/COGS subtracted from total revenue yields ________.
Gross Profit
Summarizes accounts involved in a transaction: increases, decreases, and associated amounts.
Journal Entry
No entry can appear on both the balance sheet and the ________.
Income Statement
Formula used to determine how much it costs to sell a product/service.
COGS/Net Sales
One contract covering more than one valuable good or service.
Multiple-Element Transaction
The accountant estimate of the wear and tear on a long-term asset resulting from normal use.
Depreciation
When the value of equipment declines faster than originally estimated.
Impaired
