Accounting 101
Balance Sheet is AKA
Statement of Financial Position
Resources owned by a company and which have future economic value
What are assets?
Shows the results of a business's operations for a specific period of time.
What is an Income Statement?
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
Name the 7 users of the Financial Information?
What is: Owners and managers, suppliers, banks, tax authorities, regulatory agencies, and investors.
Money due to a firm for goods or services delivered or used but not yet paid for by customers.
Accounts Receivable
Report the changes that occurred in the owner's financial interest during the reporting period.
What is a State of Owner's Equity?
These represent the types of business organizations that use accounting.
1)sole proprietorships, 2)partnerships and 3)corporations?
Two long-term liabilities
Mortgage Payable, Notes Payable not due within the year
Reports a company's assets, liabilities, and owner's equity at a specific point in time
What is a Balance Sheet?
Tangible, long-lived assets that are used in the company's operations.
Property, Plant, and Equipment
Accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits
Any financial event that changes the resources of a firm.
business transaction
___Results when revenue is greater than the expenses for the period
What is a Net Income/Profit?
Section of the balance sheet for these items
Land, buildings, machinery, vehicles, furniture
PPE - Property, Plant and Equipment
The relationship between assets and liabilities plus owners equity is called?
What is Fundamental accounting equation.
Items that are likely to be converted into cash within one year
Current Assets
A result of a net income or loss will affect this account
What is Capital?