What do I own?
Total amount in bank accounts, cash registers and lock boxes
What is cash?
Formal loans owed to banks or creditors
What is notes payable?
Owner’s claim to company assets
What is stockholders' equity?
Cost of insurance used this month
What is Insurance Expense?
Cost of utilities used this month
What is utility expense?
Resources used to hold or create economic value
What are assets?
Amount owed to vendors for goods or services
What is accounts payable?
business owned by 1 person; owner is personally liable for all business debts
What is a sole proprietorship?
Cost of supplies used this month
What is supplies expense?
Earnings of a company over a specific period of time
What is revenue?
Cost of machines, vehicles or computers owned by the company
What is equipment?
Future amounts a company will need to pay creditors
What is a liability?
A separate entity from both a legal and accounting perspective. public or private business whose owners are not liable for business debts
What is a corporation?
Costs associated with earning revenue
What are expenses?
Cost of rent used this month
What is rent expense?
Cost of pens, staplers or notebooks owned by the company
What are supplies?
Assets = Liabilities + Stockholders' Equity
What is the basic accounting equation?
amounts they contributed to the business in exchange for its stock (Common Stock)
What is paid-in capital?
Cost of employee labor worked this month
What is wage expense?
Cost of advertising used during the month
What is advertising expense?
Amount paid to landlord for future month’s rent
What is prepaid rent?
Amount customers owe the company for sales that have already happened
What is accounts receivable?
internal focus; management uses; includes specialized or customized reports
What is managerial accounting?
Amount earned during the month from selling goods
What is sales revenue?
an external focus of accounting; investors, creditors, customers, employees use
What is financial accounting?