Financial Statements
This financial statement reports a company’s financial position at a specific point in time.
What is a Balance Sheet?
This category of assets includes cash, accounts receivable, and inventory.
What are Current Assets?
This principle states that accounting methods should be applied in the same way across periods.
What is Consistent Reporting?
This type of entry is made at the end of an accounting period to update accounts before preparing financial statements.
What are Adjusting Entries?
This is a written promise to pay a specific amount of money on a certain date.
What is a Promissory Note?
This statement summarizes revenues and expenses to determine net income or net loss.
What is an Income Statement
This type of liability is due within one year.
What are Short-Term Liabilities?
This term refers to the systematic process of recording, summarizing, and reporting financial transactions.
What is the Accounting Cycle?
This trial balance is prepared after adjusting entries are posted.
What is the Adjusted Trial Balance?
This is the amount of money a borrower must repay on the maturity date of a note.
What is Maturity Value?
This financial statement reports changes in ownership equity over an accounting period.
What is the Statement of Stockholder's Equity?
This type of liability is expected to be paid over a period longer than a year.
What are Long-Term Liabilities?
This term represents the total cost of products sold by a business during a period.
What is the Cost of Merchandise Sold?
This contra-asset account estimates the amount of uncollectible accounts.
What is the Allowance for Uncollectible Accounts?
This term refers to the interest that has been earned but not yet received.
What is Accrued Interest OR Revenue?
This concept requires that all relevant financial information be included in a company’s financial reports.
What is Adequate Disclosure?
This term refers to the original cost of an asset minus its accumulated depreciation.
What is Book Value?
This accounting process involves counting and valuing inventory at the end of a period.
What is Physical Inventory?
This account is used to close revenue and expense accounts at the end of a fiscal period.
What is Income Summary?
This represents the earnings a company makes from interest on notes receivable or other investments.
What is Interest Income?
This is the concept that expenses should be recorded in the same period as the revenues they help generate.
What is Matching Revenue with Expenses?
This is a type of asset that includes land, buildings, and equipment.
What are Plant Assets?
This is the total sales minus sales returns and allowances.
What is Net Sales?
This is the accounting period that a business uses to report financial data, which may or may not align with the calendar year.
What is the Fiscal Year?
This liability represents the amount a company owes for federal income tax.
What is Federal Income Tax Payable?