Income Statement
The money earned by a company.
What is revenue?
The accumulated profits after deducting dividends.
What are retained earnings?
This describes the cash that comes in minus the cash that goes out of a company.
What is cash flow?
The basic accounting equation used to calculate the Balance Sheet.
What is Assets = Liabilities + Owner's Equity?
A period of 12 months that a company uses for accounting purposes.
What is a fiscal period?
The calculations for net income.
What is revenue minus expenses?
The calculations for the ending balance of retained earnings for a set time period. (for example, monthly or yearly)
What is the beginning balance of retained earnings minus dividends?
The value used in the calculation of operating activities and is taken from a previous financial statement.
What is net income?
The liability account that shows the company owes other companies.
The tangible and intangible items with value that are held by a company.
What are assets?
What are income and expenses?
The two statements that use the ending balance of retained earnings for their calculations.
What two statements have the ending balance of retained earnings in its calculations?
The activity used in the Cash Flow statement to calculate financing activities, and is also used in calculating retained earnings.
What are payments of dividends?
The account type where the retained earnings is located on the balance sheet.
What is Stockholder's Equity or Owner's Equity?
The shares of a company that are purchased by investors.
What is common stocks?
A result of expenses being more than income.
What is net loss?
The three elements of the statement of retained earnings?
What are the beginning balance of retaining earnings, net income, and dividends?
The three elements used to calculate the cash flow of a company.
What are operating, investing, and financing activities?
This asset is listed first on the balance sheet and its value is taken from the previous financial statement.
What is the cash account?
A sequenced, 8-step process that tracks, records, and analyzes all financial activity and transactions within a business.
What is the accounting cycle?
Two other financial statements that are connected to the income statement by using net income.
What are the balance sheet and cash flow statements?
The indicator that the company may be heading toward bancruptcy.
What is a negative ending balance in retained earnings?
The total calculated from the three elements of the Cash Flow statement.
What is net increase or net decrease on the Cash Flow statement?
What is the unearned income account?
A bookkeeping worksheet in which the balances of all ledgers are compiled into equal debit and credit account column totals.
What is a trial balance?