Balance Sheet
Assets = Liabilities + ____
Equity
Revenues minus expenses are called
Net Income
Paying rent is what type of cash flow?
Operating
Assets expected to be turned into cash < 1 year
Current Assets
Which statement shows if a business is profitable?
Income Statement
Which is NOT an asset: Cash, Inventory, or
Retained Earnings?
Retained Earnings
Which expense is NOT found on the income statement: Rent, Wages, or Accounts Payable?
Accounts Payable
Buying equipment belongs to which section of cash flows?
Investing
What are long term physical assets?
Fixed Assets
Which statement lists assets, liabilities, and equity?
Balance Sheet
Items owed to a company by its customers are called
Accounts Receivable
If revenue is $50,000 and expenses are $30,000, what is net income?
$20,000
Which statement shows how much cash a company has at the end of a period?
Cash Flow Statement
Long Term Liabilities
Which statement shows cash inflows and outflows?
Cash Flow Statement
If Assets = $50,000 and Liabilities = $20,000, what is Equity?
$30,000
What is the formula for gross profit?
Revenue minus Cost of Goods Sold
Borrowing $10,000 from a bank goes under which section?
Financing
Name an intangible asset.
Goodwill, trademark, or patent
Name the two methods of accounting.
Accrual and Cash Methods
A company has $10,000 cash, $5,000 inventory, and $20,000 equipment. Liabilities = $12,000. What is equity?
$23,000
Depreciation is an example of what type of expense?
Non-cash expense
If beginning cash = $5,000, net cash flow = $7,000, what is ending cash?
$12,000
Name an accounting method that spreads the cost of an asset over its useful life.
Depreciation
Investors often use EPS (Earnings Per Share). Which statement provides net income?
Income Statement