Trial Balance Flashcards
1
Q
Trial Balance
A
a list of balances of the ledger accounts drawn up in two columns (d/c) the totals of which should be equal
2
Q
Financial Statement
A
written record of a businesses financial performance and activities
3
Q
Statement of Profit/Loss
A
shows a company’s revenues and expenses during a particular period- shows how they are turned into net income/profit
4
Q
Statement of Financial Position
A
represents the assets, liabilities and equity of a business at a point in time
5
Q
Credit
A
an entry recording a sum received
6
Q
Debit
A
an entry recording a sum owed
7
Q
Equity
A
represents the value that would be returned to a company’s shareholders if all the assets were liquidated and all debts were paid off
8
Q
Equity equation:
A
total assets - total liabilities
