Definitions
A resource with an economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits.
What is Asset
State whether the item is an asset, liability or equity (if an asset, state what type of asset it is):
Accounts Payable
What is Liability
How do you calculate Gross Profit?
What is Total Revenue minus COGS (Cost of Goods Sold)
The three types of financial statements?
What is Balance Sheet, Income Statement and Cash-Flow statement
What is the unit of measure for financial claims?
What is Money
Most commonly referred to as an individual's income after taking taxes and deductions
What is Net Income
State whether the item is an asset, liability or equity (if an asset, state what type of asset it is):
Company Vehicle
What is Fixed Asset
Depreciation is an example of _________ expense?
What is Non-operating expense
What is an Audit and what group of people are most commonly known for auditing companies?
What is Audit is an examination and evaluation of the financial statements of an organization to make sure they represent a fair and accurate representation of what they claim to have. The company is IRS
What are the three types of ways companies try to retain customers?
What is Data backed offers, elements of surprise and high quality products
The record keeping system for a company's financial data with debit and credit account records validated by a trial balance
What is General ledger
State whether the item is an asset, liability or equity (if an asset, state what type of asset it is):
Trademark
What is Intangible Asset
What are the two most common ways to reduce expenses?
What is Buy in Bulk and reduce utilities (specifically electrical)
Dell Inc. brought in $50,000 in revenue with $13,550 in operating expenses and $11,300 in COGS. They also have to pay $4,290 in taxes. What is the Gross Profit and Net income?
What is GP = $38,700
NI = $20,860
What is the difference between owner's equity and shareholder's equity?
What is Owner's equity is private and shareholder's equity is public
What is the accounting equation?
What is Assets= Liabilities + Equity
State whether the item is an asset, liability or equity (if an asset, state what type of asset it is):
Business Capital
What is Owner's Equity
What are the six main topics that make up a company's expenses?
What is Salaries, utilities, advertisement, depreciation, rent and insurance
Which of the three financial statements is known to be the most intuitive and why?
What is Cash Flow statement because it follows the movement of cash and cash equivalents in and out of the company in three specific areas: Investing, Financing and Operating.
What is the process to acquire a loan?
What is Find a business to acquire a loan. Then fill out an application with financial history and social security. The company runs a background check to make sure everything is secure. If the company denies the request, they must provide a reason. If accepted, both parties sign an agreement on the amount of money and time frame.
An official document that buyers send to sellers to document the sale of products and services to be delivered at a later date.
What is Purchase order
State whether the item is an asset, liability or equity (if an asset, state what type of asset it is):
Bank Deposits
What is Financial Assets
A supply chain currently has $4,500 in cash, $8,300 in inventory, $580 in supplies, customers owe them $330 for purchased goods, and $4,000 for equipment. The building and land are worth $476,000. What is the amount of assets the company has?
What is $493,710
A financial statement is an example of what?
What is Record Keeping
What is the term for a creditor's claim to the assets of a building? What is a creditor?
What is Liability. A creditor is someone who approves of a loan.