FR&A - Balance Sheets Flashcards
Accounts Payable
Amounted that a business owes to its vendors for goods and services that were purchased from them but which have not yet been paid.
Accrued Expenses
Liabilities related to expenses that have been incurred but not yet paid as of the end of an accounting period - an example of an accrued expense is rent that has been incurred but not yet paid, resulting in a liability “rent payable”
Amortised Cost
The historical cost (initially recognized cost) of an asset, adjusted for amortisation and impairment.
Assets
Resources controlled by an enterprise as a result of past events and from which future economic benefits to the enterprise are expected to flow.
Available for Sale
Under US GAAP debt securities. It classified as either held to maturity or held for trading securities. The investor is willing to sell but not actively planning to sell. In general, available for sale debt securities are reported at fair value on the balance sheet, with unrealized gains included as a component of other comprehensive income
Balance Sheet
The financial statement that presents an entities current financial position by disclosing resources the entity controls (its assets) and the claims on those resources (its liabilities and equity claims) as of a particular point in time (the date of the balance sheet)
Balance sheet ratios
Financial ratios involving balance sheet items only.
Capital structure
The mix of debt and equity that a company uses to finance its business; a companies specific mixture of long term financing.
Classified balance sheet
A balance sheet organized so as to o troop together various assets and liabilities into sub categories
Contra Account
An account that offers another account
Current assets
Assets that are expected to be consumed or converted into cash in the near future, typically one year or less
Current Liabilities
Short-term obligations, such as accounts payable, wages payable, or accrued liabilities, that are expected to be settled in the near future, typically one year or less.
Deferred income
A liability account for money that has been collected for goods or services that have not yet been delivered; payment received in advance of providing a good or service
Deferred revenue
A liability account for money that has been collected for goods and services that have not yet been delivered; a payment received in advance of providing a good or service
Deferred tax assets
A balance sheet asset that arises when an excess amount is paid for income taxes relative to accounting profit. The taxable income is higher than accounting profit and income tax payable exceeds tax expense. The difference during the course of future operations when expense exceeds income tax payable
Deferred Tax liabilities
A balance sheet liability that arises when a deficit amount is paid for income taxes relative to accounting profit. The taxable income is less than the accounting profit and income tax payable is less than tax expense. The company expects to eliminate the liability over the course of future operations when income tax payable exceeds tax expense.
Derivatives
A financial instrument whose value depends on the value of some underlying asset or factor
Equity
Assets less liabilities; the residual interest in the assets after subtracting the liabilities
Fair Value
The amount at which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’a length transaction; the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
Goodwill
An intangible asset that represents the excess of the purchase price of an acquired company over the value of the net assets acquired
Held-to-Maturity
Debt (fixed income) securities that a company intends to hold to maturity; these are presented at their original cost, updated for any amortization or discounts premiums
Income tax payable
The income tax owed by the company on the basis of taxable income
Intangible assets
Assets lacking physical substance, such as patents and trademarks
Investment property
Property used to earn rental income or capital appreciation (or both)
Liabilities
Present obligations of an enterprise arising from past events, the settlement of which is expected to result in an outflow if resources embodying economic benefits; creditors claims on the resources of a company
Liquidity
The ability to purchase or sell an asset quickly and easily at a price close to fair market value. The ability to meet short-term obligations using assets that are most readily converted into cash
Liquidity ratios
Financial ratios measuring the companies ability to meet its short-term obligations
Non-current assets
Assets that are expected to benefit the company over an extended period of time (usually more than one year)
Non-current liabilities
Obligations that broadly represent a probable sacrifice of economic benefits in periods generally greater than one year in the future
Owners Equity
The excess of assets over liabilities; the residual interest of shareholders in the assets of an entity after deducting the entities liabilities
Prepaid Expense
A normal operating expense that has been paid in advance of when it is due
Property, plant, and equipment
Tangible assets that are expected to be used for more than one period in either the production of supply of goods and services, or for administrative purposes
Shareholders equity
Assets less liabilities, the residual interest in the assets after subtracting the liabilities
Solvency
With respect to financial statement analyst, the ability of a company to fulfill its long term obligations
Solvency ratios
Ratios that measure a companies ability to meet its long-term obligations
Statement of changes in equity
A financial statement that reconciles the beginning of period and end of period balance sheet values of shareholders equity; provides information about all factors affecting shareholders equity
Statement of financial condition
The financial statement that presents an entities current financial position by disclosing resources the entity controls (its assets) and the the claims on those resources (L and E) as of a particular point in time
Statement of financial position
Balance sheet
Trade payables
Amounts that a business owes to its vendors for goods and services that were purchased from them but which have not yet been paid
Unearned revenue
A liability account for money that has been collected for goods or services that have not yet been delivered; payment received in advance of providing a good or service
Working capital
The difference between current assets and current liabilities
