Quiz 1 Flashcards
balance sheet (financial condition)
reports the company’s assets, liabilities and owners’ equity as of a specified date
balance sheet date
the specified date of the balance sheet reporting assets and liabilities
asset
anything owned by the company
accounts receivable
amounts due from customers for goods and services the co. has already provided
inventory
merchandise normally available for sale to customers
current asset
an asset expected to be converted to cash within one year
non current asset
an asset expected to be converted to cash in greater than one year - has 2 sub categories
categories of non current assets
fixed and intangible
fixed asset
land, buildings, equipment and other long-term (more than 1 year) assets, are also known as plant assets
intangible asset
sub category of long term assets - include patents, trademarks, copyrights and goodwill
alternate names for fixed assets
PP&E property plant and equipment
owners equity
indicates the owners’ investment in the business
current + non current assets equal
total assets
current liabilities + long-term debt equals
total liabilities
alternate name for balance sheet
statement of financial condition
3 examples of intellectual property
patent, copyright, trademark
2 names for reinvested profits
owners equity and retained earnings
accumulated earnings and reinvested profits
who do the profits of the business belong to
the owners
alternate name for profits
earnings
corporations name for owners equity
stockholder/shareholder equity
is preferred stock listed before or after common on the balance sheet
before
income statement
reports the business’s revenues, expenses, and net income for a specified period of time
revenues / top line
total sales
expenses
costs incurred to generate sales
