Statements
This financial document highlights the total profit or loss the firm experienced during that period. Like a quarterly period.
Income Statement
A summary of all the transactions that have
occurred over a particular period.
Financial Statement
Accountants rely on accurate data recorded by this person.
Bookeeper
The ease of which an asset can be turned into cash is known as.
Liquidity
Three major financial activities of a firm.
Operations, Investment & Financing
This financial document reports the firm’s financial condition on a specific date.
Balance Sheet
This document shows the revenue a firm earned selling its products compared to its selling costs (profit or loss) over a specific period of time.
Income Statement
Transactions are recorded into _____________.
Ledgers
The first step in the accounting cycle involves this.
Classifying Transactions
Value of what’s received from goods sold, services
rendered, and other financial sources.
Revenue
The Income Statement usually reports the COGS which stands for _________________
Cost of Goods Sold
This financial statement details what the company owns and owes on a certain day.
Balance Sheet
Business Debts are recorded as ______________.
Liabilities
How much a firm earned by buying (or making) and
selling merchandise.
Gross Profit
Costs involved in running a business, such as rent,
utilities, and salaries.
Operating Expenses
It tracks a company’s cash receipts and cash payments.
Statement of Cash Flows
Assets = Liabilities + Owners’ equity
Fundamental Accounting Equation
Double Entry Bookeeping
The amount of money owed to the firm that it expects to receive within one year.
Accounts Receivable
Long-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have
value.
Intangible Assets
Stockholders, investors and this key government agency are all interested in a firm’s financial state-
ments.
Internal Revenue Service
Economic resources (things of value) owned by a firm are called _____________.
Assets
The fifth step in the accounting cycle includes........
Preparing financial statements
Reputation, customer loyalty or location are examples of
Good Will
Intangible Asset
Assets that are relatively permanent, such as land,
buildings, and equipment.
Fixed Assets