The bottom line
Money earned through the sale of goods or services
What is Revenue
What you own that has value
Assets
Cash is part of this section on a balance sheet.
What is asset?
Accounts receivable is found on this financial statement
What is the balance sheet?
This happens when revenues are more than expenses.
What is a profit?
Money spent to run a business such as rent and utilities.
What are Expenses
What you owe
Liabilities
Accounts receivable is part of this section of a balance sheet.
What is asset?
Which statement shows A=L+E?
What is the Balance Sheet
This type of company's profits go to owners and shareholders.
What is a for-profit
This statement shows the revenue and expenses for a company over a period of time.
What is the income statement
The value that remains for owners and shareholders on a balance sheet
What is the owner's equity or equity
Capital contributions are part of this section on a balance sheet.
What is equity?
Gross Profit is found on this Financial Statement
Income Statement
This happens when expenses are more than revenues.
What is a loss?
Expenses directly associated with making what the business sells
A financial statement that shows what your company owns, owes and what remains at a particular moment in time.
What is a Balance Sheet
Mortgage payable is part of this section in a balance sheet.
What is liability?
Name 1 User or Audience of Financial Statements
Owner
Manager
Investor
Lender
Government Entities
This type of company's profits go towards their social mission.
What is a non-profit?
Revenue - Cost of Goods Sold = ?
What is Gross Profit
This is the accounting equation.
Assets = Liabilities + Equity
Prepaid insurance is part of this section on a balance sheet.
What is an Asset
Name three standard financial reports we learned about this unit.
Income Statement, Balance Sheet, and Cash Flow Statement
The next best alternative given up when a decision is made.
What is opportunity cost?