A
Something owed to another business entity
What is a liability?
An unwritten promise to pay a supplier for assets purchased or a service rendered.
What is Accounts Payable?
Ease with which something can be converted to cash.
What is liquidity?
A type of ownership structure in which stockholders own the business. The owners’ risk is usually limited to initial investment.
What is a corporation?
A formal written promise to pay a supplier or lender a specified sum of money at a definite future time.
What are notes payable?
The financial statement that reports the profitability of the business for a period of time.
What is an income statement?
Represents a reduction in owner’s equity because the owner takes cash or other assets for personal use.
What is drawing?
The financial statement that reports the assets, liabilities, and owner’s equity on a specific date.
What is a balance sheet?
A business that buys products to sell.
What is a merchandising business?
The amount a business charges customers for products sold or services performed.
What are revenues?
An item owned by a business that will provide future benefits.
What is an asset?
The amount by which assets exceed the liabilities of a business.
What is owner’s equity?
A business that provides a service.
What is a service business?
A business that makes a product to sell.
What is a manufacturing business?
Guidelines developed by the Financial Accounting Standards Board to be following in the accounting and report process. (Rules of Accounting)
What is GAAP? (Generally Accepted Accounting Principles)
When total revenues exceed total expenses, the difference is this.
What is net income?
Any accounting period of twelve months duration is called this.
What is a fiscal year?
A type of business structure in which one person owns the business.
What is a sole proprietorship?
An amount owed to a business by its customers as a result of the sale of goods or services.
What is accounts receivable?
A private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public's interest. (Like the congress/senate of accounting)
What is FASB or Financing Accounting Standards Board?
When expenses are greater than revenues, the difference is called this.
What is net loss?
The financial statement that that shows investments and withdrawals by the owner, as well as profit or loss generated by the business.
What is the statement of owner’s equity?
A type of ownership structure in which more than one person owns the business
What is a partnership?
Another term for owner’s equity, the amount by which the business assets exceed the business liabilities.
What is capital?
Reviewing and testing to be certain that proper accounting policies and practices have been followed.
What is auditing?