Are you an asset?
short-term, highly liquid investments that can readily be converted into cash with a minimal risk of price change due to interest rate movements.
What are cash equivalents?
This minus expenses equals net income.
What is Revenue?
This is classified as a current liabilities mainly used with purchases.
What is accounts payable?
It's me, myself, and I..
What is a sole proprietorship?
This takes the last costs of inventory in and moves them out to Cost of Goods Sold.
What is LIFO?
Expenses that have been paid in the current fiscal period but will no be subtracted from revenues until a subsequent fiscal period when benefits are received
What are Prepaid Expenses?
What is depreciation?
Owed to each state from product sales and paid monthly or quarterly.
What is a sales tax payable?
I stand on my own with tax too.
What is a corporation?
Recognizes economic events when they take place, regardless of when the related cash transactions occur
What is Accrual Basis accounting?
An asset representing a claim against another entity, usually arising from selling goods and services
What is Accounts Receivable?
An expense that measures the cost of a product.
A business may borrow money from a bank, vendor, or individual to finance operations on a temporary or long-term basis or to purchase assets
What is a note payable?
Lenders, External Auditors, Shareholders, and Board of Directors
What are external users?
Reconciles statements to general ledger accounts.
What are bank reconciliations?
This is King!
What is cash?
These are closed at the end of the accounting period.
What are temporary accounts?
What on behalf of an employer for an employee's to receive after the age of 65?
What is social security tax payable?
Financial accounting is governed by these concepts and rules.
What is GAAP (General Accepted Accounting Principles)?
Publicly traded companies sale these to raise capital for company.
Nonamoritzable intangible asset arising from the purchase of a business for more than the fair value of the net assets acquired.
What is Goodwill?
The income statement relies on this to report revenue and expenses in a specified window of time.
What is the matching principle?
A loan contract, called a debenture, which spells out the terms and conditions of the loan agreement and is paid with interest at its maturity date.
What is a bond payable?
Failure to comply with this can lead to penalties and criminal prosecution of executives.
What is the Sarbanes-Oxley Act?
This = This + This
What are Assets, Liabilities, and Stockholder's Equity?