Terms
These are economic resources that are expected to benefit the business in the future
Assets
Assets are increased by this
Debit
This financial statement reports revenues and expenses
Income Statement
This account refers to the amount of money that the company is owed by another person
Accounts receivable
This account contains all of the business's money
Cash
This type of accounting provides information to external decision makers
Financial
Liabilities are increased by
Credit
This financial statement allows decision makers to determine the financial position of the company
Balance Sheet
This account is a written promise to pay debt
Notes Payable
This account refers to owing someone money in the short term
Accounts Payable
These are the guidelines for accounting information
Generally Accepted Accounting Principles
Expenses are decreased by
Debits
This financial statement shows how much of the earnings were reinvested in the company
Statement of Retained Earnings
This account refers to the distributions of cash to the stockholders
Dividends
This account is used when you sell goods or services
Revenue
This court case requires management to review internal control and take responsibility for the accuracy and completeness of their financial reports.
Sarbanes-Oxley Act
Credit
You have to have information from this financial statement to prepare the statement of retained earnings
Income Statement
This account represents contributions from the owners of the business
Common Stock
Notes Receivable
This organization oversees the creation and governance of accounting standards
Financial Accounting Standards Board
Dividends are decreased by
Credits
This financial statement refers to the cash receipts and cash payments over a period
Statement of Cash Flows
This account is used when a business is paid for a service they haven't performed yet
Unearned Revenue
The cost of selling goods or services
Expenses