Definitions
Written record that convey the business activities and the financial performance of a company?
What is Financial Statement
The four types of Assets
What are current, fixed, financial and intangible assets
An audit can be conducted by any of these people
What is CPA?
The reason why companies focus on returning customers more than new
What is it's more expensive to attract new customers
The main difference between cash flow and net income is this
Cash flow is used to expand the business with the left over money after paying expenses. Net income states what is left over.
Represents the amount of money that would be returned to a private company's shareholder if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation
What is Owner's equity
State whether or not the term/item is an asset, liability or equity (if asset, state the specific type):
copyright
What is intangible asset
The formula used on an income statement
What is Net income = Gross Profit - expenses
This type of product provides the buyer with an experience
What is High quality product
The common phrase to describe an expense
What is "it costs money to spend money"
A time-stamped commercial document that itemizes and records a transaction between a buyer and a seller
What is an invoice
State whether or not the term/item is an asset, liability or equity (if asset, state the specific type):
mortgage
What is Liability
A bill of sale is an example of this
What is an invoice
What is Element of surprise
This is the accounting method of allocating the cost of tangible or physical assets over its useful life or life expectancy
What is Depreciation
Common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board.
What is GAAP
State whether or not the term/item is an asset, liability or equity (if asset, state the specific type):
Retained earnings
What is Equity
The main difference between an invoice and a purchase order
What is purchase order requires a signature
Referring a customer to a similar product is this type of customer retention strategy
What is data backed offer
Rights to resources, membership fees, government grants, donations and property/rent are all examples of this
What is revenue
The amount a lender charges for the use of assets expressed as a percentage of the principle
What is interest rate
State whether or not the term/item is an asset, liability or equity (if asset, state the specific type):
Mutual Funds
What is Financial Asset
The balance of all ledgers are compiled into debit and credit account column totals that are equal are written on this
What is a trial balance
This was the number 1 car company due to its high quality products they are offer with little expenses on advertising
What is porsche
A company's ability to create value for shareholders is determined by its ability to generate a positive amount of this
What is cash flow