Balance Sheet 1
This statement does not have a beginning or an end.
What is a balance sheet?
The amount a business has made during a reporting period.
What is "Earnings to Date"?
A financial statement that reports assets, liabilities and owners equity on a specific date
What is a balance sheet?
Starting a business with $1,000 of the owner's money. (How is the accounting equation changed?)
What is increasing the assets| money and the equity | original investment by $1,000?
Increasing Inventory and Decreasing Money
What is purchasing inventory?
"What We Have" refers to this balance sheet category.
What are assets?
The amount earned minus the production cost
What is gross profit?
Anything of value that is owned
What is an asset?
Purchasing Inventory (How is the accounting equation changed?)
What is a decrease in Assets | Money and an increase in Assets | Inventory?
Making a loan payment
What is a Decrease in Assets | Money and Decrease in Liabilities | Notes?
"Who Owns It" refers to these two categories on a balance sheet.
What are liabilities and equity?
The amount earned after all expenses and taxes are paid.
What is net profit?
An amount owed by a business
What is a liability?
Paying an expense (How is the accounting equation changed?)
What is a decrease in Assets | Money and a decrease in Equity | Earnings?
This can be referred to as "the bottom line"
What is net earnings?
Which category is owned by someone else, like the bank?
What are liabilities?
Cost of Production
What is the amount of money it took to make your product or service?
The amount remaining after the value of the liabilities is subtracted from the value of all assets
What is Owner's Equity?
Purchasing Inventory with someone else's funding (How is the accounting equation changed?)
What is an increase in Assets | Inventory and an increase in Liabilities | Notes?
Giving someone your product without requiring payment (How is the accounting equation changed?)
What is a decrease in Assets | Inventory and a decrease in Equity | Earnings?
The Accounting Equation
What is Assets = Liabilities + Equity?
The math equation that determines the UNIT COST of production.
What is "Cost of Production" divided by # of Products Made
A business activity that changes assets, liabilities or owner's equity.
What is a transaction?
Selling your product and making money (How is the accounting equation changed?)
What is an increase in Assets | Money, decrease in Assets | Inventory and an increase in Equity | Earnings?
This generally refers to the net worth of a company
What is equity?