The Basics
This asset includes coins, money orders, balances in checking and savings accounts.
What is cash?
This statement reports the events causing an increase or decrease in a business’s stockholders’ equity during a given time period, including both the changes in a company’s common stock and changes in its retained earnings.
What is the statement of stockholders' equity?
A business owned by one person. Its primary advantage is its ease of formation. A major disadvantage is unlimited liability.
What is a sole proprietorship?
Increases in resources that a firm earns by providing goods or services to its customers
What are revenues?
Financial statement also known as the statement of financial position. It is a listing of a firm’s assets, liabilities, and stockholders’ equity as of a given date, usually the end of an accounting period.
What is the balance sheet?
A voluntary association of two or more persons for the purpose of conducting a business. It is a pass-through entity.
What is a partnership?
Obligations or debts that a business must pay in cash or in goods and services at some future time as a consequence of past transactions or events.
What are liabilities?
This statement reports the results of operations for a business for a given time period, usually a quarter or a year. It is also known as the statement of earnings or statement of operations.
What is the income statement?
Legal entity created under the laws of a state or the federal government. Its owners receive shares of stock as evidence of their ownership interest in the business. Its major disadvantage is double taxation.
What is a corporation?