Balance Sheet
A financial statement that reports the assets and claims to those assets at a specific point in time.
What is the balance sheet?
A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
What is the income statement?
Current Assets / Current Liabilities
What is the current ratio?
Normal Balance of an Owner's Equity Account
What is a Credit?
Fees earned less operating expenses
What is operating income?
A category on the balance sheet that includes cash, accounts receivable, equipment, and inventory.
What are assets?
The difference between revenue and expenses.
What is net income?
Total Liabilities / Total Assets
What is Debt to Asset ratio?
Comparing each item in a financial statement with the total amount from the same statement
What is a vertical analysis?
Sales less
Cost of merchandise sold
What is gross profit?
Accounts representing short term obligations under one year
What are current liabilities?
A category on the income statement that represents the write off of uncollectible receivables.
What is bad debt?
The current ratio of a company with current assets of $300,000 and current liabilities of $100,000
What is 3?
Is the normal balance a debit or credit for Property, Plant, and Equipment? Accounts Payable?
What is Debit and Credit?
The difference between budgeted and actual expenses?
What is a variance?
Accumulated Depreciation
What is a Contra-Asset Account?
Operating Activities
Investing Activities
Financing Activities
What is are the 3 sections of the Statement of Cash Flows?
The total amount of assets of a company with total liabilities of $300,000 and total stockholder's equity of $250,000.
What is $550,000.
A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes.
What is Generally Accepted Accounting Principles (GAAP)?
4/10, n/eom
What is 4% discount if paid within 10 days or net end of month?
The owners' claim to assets.
What is stockkholder's equity?
This item on the income statement is considered a noncash expense that is directly tied to fixed assets such as equipment, vehicles, or buildings.
What is depreciation?
The value of current assets when the current ratio is 2 and current liabilities are $400,000.
What is $800,000.
Transactions that are recorded to the accounting records in the periods in which the events occur, not when it's paid.
What is accrual basis accounting?
Knowledge is
What is Bargaining Power?