Assets
What is an Asset?
Something of value that you own.
What is a liability?
Something that you owe.
What is stockholder's equity?
The value of your business
What is the accounting equation?
Assets = Liabilities + Owners Equity
What does liquid mean and what account is the most liquid?
Liquid: the ability of a company to turn assets into cash
Cash
Give 5 examples of assets.
answers vary
What is a long term liability?
A liability that lasts over a year
What are two categories of Stockholder's Equity?
Capital Stock
Retained Earnings
What are the four changes in Stockholder's Equity?
Withdrawals, investments, revenue, expenses
True or False: Accumulated Depreciation is a contra account
true
What are plant assets?
Assets that are used for more than a year.
What is a current liability?
A liability that lasts for less than a year
What is capital stock?
The amount of shares that a company receives.
What does GAAP stand for and what is the definition?
Generally Accepted Accounting Practices/Principles
the rules and standards that accountants follow when recording financial information
Which of the following is not a current asset?
Prepaid insurance, Land, Supplies, Accounts Receivable
Land
What are current assets?
Assets that are used for less than a year.
What are the two key words to know that a transaction involves a liability?
Payable, Unearned
What are Retained Earnings?
The profits that a company has earned.
Why is it called a balance sheet?
What is another name for a balance sheet?
Statement of financial position
What are fixed assets
Property, plant, equipment
The assets and liabilities of an organization are whose responsibility?
The Board of Directors
What are long term investments?
Investments that a company holds for over a year.
What are balance sheets used for?
To gain insight of a company's financial standing at the end of a fiscal period.
What are the three parts of a balance sheet heading?
Company Name
Balance Sheet
Date