financial statements and ratios Flashcards
used to report financial status at a certain point
balance sheets
used to report on financial activity, or flow, between two points in time.
income statements
What a company owes and owns at a given point in time
assets
amount owed to creditors
liability
owners equity
owners investment
assets= liability + owners equity
balance sheet
allocation of the purchase costs of fixed assets over a number of years
portion of the original cost of the asset that has been “used up” during a period
Has a significant effect on the net income of the org.
depreciation
contra asset account.
depreciation
cash or items that should be converted into cash or used up within \_\_\_\_\_\_\_. Cash Accounts receivable Inventory Prepaid expenses (ex. Insurance)
current assets
Land, buildings, vehicles, and equipment
fixed assets
obligations owed to creditors, such as bank or finance company
notes payable
obligation owed for inventory or services purchased on credit
accounts payable
obligations have been incurred but not yet paid..”(wages payable, interest payable, tax payable)
accruals payable
Statement of profit and loss
income statement
measure the inflow of new assets to the org.
revenues