Profit And Loss Flashcards
Accounting Period
Period in which accounting transactions occur
Accrual Accounting
An accounting system that recognizes income when it is earned and expenses when they are incurred
Cash Accounting
An accounting system that recognizes income when it is actually received and expenses when they are actually paid
Cash Expense
Expenses that require the expenditure of cash
Depreciation
An annual, non cash expense to recognize the amount by which an asset loses value due to use, age, and obselescence
Gross Revenue
The total of all revenue received by a business over a period
Income
Economic gain resulting from the production of goods services, including receipts from the sale of commodities, other cash payments, increases in inventories and accounts receivable
Income statement
A report that summaries the income and expenses and computes the resulting profit of a business over an accounting period
Inventory Statement
A report with a complete listing of number, type, and value of assets owned at a point in time
Inventory Schedule
A plan on when an evaluation of inventory should be conducted by a business
Loss
Financial result that occurs when expenses exceed revenue, which causes a decrease in equity
Net Farm income (NFI)
The difference between gross revenue and total expenses including gain or loss on the sale of all capital assets
Net farm income fro operations (NFIFO)
The difference between total revenue and gross expenses, not including gain or loss on the sale of certain assets
No cash expense
An expense that does not involve the expenditure of cash, such as depreciation
Profit
Total revenue minus total expenses including opportunity costs of labor and capital
