Vocab
The life of a business can be divided into artificial time periods and useful reports covering those periods can be prepared for the business is called
Time/Fiscal Period
Changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period
Adjustments
What is the appropiate headings for a income statement?
Company Name, Report name, Date (Period of time)
What is a asset?
Anything that has current or future economic value to a business.
This financial statement reports assets, liabilities, and owner’s equity during the accounting period. It can be used to determine the liquidity of a business.
Balance Sheet
A company’s financial obligation to pay for things such as accounts payable, taxes payable, and debt.
Liabilities
Financial reports that summarize the financial condition and operations of a business
Financial Statements
Name some elements that change in capital.
Net Income, withdrawals, Investments
A convenience store’s liabilities include Accounts Payable $63,008,000, Other Current Liabilities $3,920,000, and Long-Term Debt $42,018,000. What are the Total Current Liabilities?
$66,928,000
What are two headings that Income statements and Balance sheet have?
Company name and Report Name
The recording of debit and credit parts of a business transaction
Double-entry Accounting
This financial statement provides a summary of revenue and expenses during the accounting period. This statement is used to figure gross profit.
Income Statement
What's some elements of balance sheet?
Asset, Liabilities, Owner's Equilty
A fully paid of car is an example of?
Asset
What do the ending account represent?
The Ending capital account represents the monetary investment “left” in their account after all the increases (money contributed and profits reported) and decreases (money taken out and losses reported).
A business form ordering a bank to pay cash from a bank account
Check
The standards and rules to follow while recording and reporting financial activities
Generally Accepted Accounting Principles
Some elements of an Income statement
Revenue, Expenses , and Net Income (Net Loss)
You save up $10,000 to start your own business. You then purchase inventory at $15,000. Based on this information what are the Total Liabilities for the business?
$5,000
T or F
Heading of income and bank statements are EXACTLY the same.
F ( Period of time = Income Exact Date = Bank.)
A list of assets, usually containing the value of individual terms
Investory
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Bank Statement
How do you compute the ending account balance?
Beginning capital + investments +/- net income (net loss) –
withdrawals/drawing
Mrs. Marybeth net receivables are $3,500, cash is $5,200, inventory is $12,000, and other current assets are $2,000. What are the Total Current Assets?
$22,700
Explain the relationship between the balance sheet and the accounting
equation.
The accounting equation ensures that the balance sheet remains balanced