Assets
T/F Accounts Receivable usually a current asset
True
present obligations of a particular entity to transfer an economic benefit.
What are liabilities
What is the formula for equity
Assets-Liabilities
What is the accounting equation
A=L+SE
the present rights of an entity to an economic benefit.
What is an asset
What does PP&E stand for
What is Property Plant and Equipment
Name the definition: expected to require the use of current assets for payment, and usually are payable within one year from the balance sheet date (or operating cycle, if longer).
what are current liabilties
What is equity
T/F the balance sheet is a freeze frame at a point in time of a company's financial position
True
What is subtracted from revenues on the income statement?
What are expenses
Name an Intangible Asset
What are Goodwill, Trademarks, Patents, and Copyrights, etc.)
Name the Definition: expenses already incurred but not yet paid
What are acrrued liabilities
Definition: amounts earned by the corporation on behalf of its shareholders and not (yet) distributed to them as dividends.
What are Retained Earnings
Name the Definition: the ability of a company to convert its assets to cash to pay its current liabilities.
what is liquidity
What are the effects on the accounting equation when cash is received previously on account
Cash increases and A/R decreases. No net effect on the accounting equation
Name two long-term liabilities
What are intangible assets, PP&E, Investments, etc.
Name a long-term liability
Notes payable, Bonds payable etc.
Definition: invested capital consisting primarily of amounts invested by shareholders when they purchase shares of stock from the corporation.
What is Paid-In Capital
Name the definition: an assessment of whether a company will be able to pay all its liabilities, which includes long-term liabilities.
What is long-term solvency
Definition: represent the left side of the account.
What are debits
How long is the maturity date for an asset in order for it to be considered a cash equivalent
Three months
A company has a $1,000,000 notes payable with 10 year maturity. 100,000 of the principal is paid each year. How much of the liability is long term?
$900,000
Outside of Retained Earnings and Common Stock what is another Equity account
What is AOCI
Why does cash come first in a balance sheet
It is the most liquid account
the current private sector body that has been delegated the task of setting accounting standards.
What is FASB